Edited version of private advice

Authorisation Number: 1051861134679

Date of advice: 6 July 2021

Ruling

Subject: Deceased estate - two year discretion

Question

Will the Commissioner allow an extension of time to XX XXXX 20XX for you to dispose of your ownership interest in the dwelling and disregard the capital gain you make on the disposal?

Answer

Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time. Further information about this discretion can be found by searching 'QC 52250' on ato.gov.au.

This ruling applies for the following period:

Year ended 30 June 2021

The scheme commences on:

1 July 2020

Relevant facts and circumstances

The deceased passed away in 20XX.

The deceased owned a dwelling which was the main residence of the deceased until death.

The dwelling was acquired prior to 20 September 1985.

The dwelling was on land of less than two hectares in size.

A year or so after the date of death, the house was being prepared for sale and discussions were held with a real estate agent regarding listing for sale.

Further preparations were impeded by the onset of COVID-19 pandemic restictions.

Following the easing of restrictions a real estate was engaged and the dwelling listed for sale with the earliest auction date being just prior to two years after the date of death.

The dwelling sold at auction; however, the agreed settlment period was several months.

Settlement for the sale occurred two years and several months after the date of death.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195