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Edited version of private advice
Authorisation Number: 1051849029419
Date of advice: 10 June 2021
Ruling
Subject: Capital gains tax - deceased estate
Question
Is any capital gain or capital loss disregarded on the sale disregarded?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner confirms that any capital gain or capital loss is disregarded under section 118-195.
This ruling applies for the following period
Year ended 30 June 2020.
Year ended 30 June 2021.
The scheme commences on
1 July 2000.
Relevant facts
The deceased acquired a dwelling (the dwelling).
The dwelling is located on land that is less than two hectares.
The dwelling was the deceased's main residence when the passed away in 20xx.
The will of the deceased provided a right to reside in the dwelling to their spouse and child (Person A) until it was sold.
Person A occupied the dwelling until recently when they moved into a nursing home.
Person A will make an absence choice.
Settlement occurred in 20xx.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subdivision 115-A
Income Tax Assessment Act 1997 section 102-20
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 118-120
Income Tax Assessment Act 1997 section 118-130
Income Tax Assessment Act 1997 subsection 118-130(3)
Income Tax Assessment Act 1997 section 118-195