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Edited version of private advice
Authorisation Number: 1051885029655
Date of advice: 18 August 2021
Ruling
Subject:Capital gains deceased estate
Question
Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time to the two year period until settlement?
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 periods:
Year ended 30 June 2019
Year ended 30 June 2020
Year ended 30 June 2021
The scheme commences on:
XX XXXX 20XX
Relevant facts and circumstances
Your solicitor advised that:
The deceased passed away on XX XX 20XX. You are the executor for the deceased estate.
The deceased was the sole registered proprietor of a property. The property was the deceased's principal place of residence where they resided until the date they passed away on XX XX 20XX. The property has been vacant since their death.
The land is less than 2 hectares.
Probate was granted on the XX XX 20XX.
The deceased was a hoarder. Numerous hours were spent sorting through the contents for disposal/donation of the goods and making the property ready for sale.
You as the executor have been managing the property since probate was granted.
Management of the estate and sale of the property have been hampered by the restrictions imposed by COVID 19.
You suffer from a medical condition and the stress of the deceased's passing and the administration of the estate has exacerbated your condition. You were hospitalised twice since the death of your parent and are now on medication which severely affects your energy levels.
On XX XX 20XX, the solicitor was advised of the neighbour's interest in the purchase of the property. On XX XX 20XX, the trustee advised the proposed sale with the neighbour had fallen through.
Your solicitor was then advised on XX XX 20XX that an auction for the property had been organised for the XX XX 20XX.
The property was sold and settlement for the property took place on XX XX 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10,
Income Tax Assessment Act 1997 section 118-195,
Income Tax Assessment Act 1997 subsection 118-195(1)