Edited version of private advice

Authorisation Number: 1051900154615

Date of advice: 16 September 2021

Ruling

Subject: CGT - deceased estate

Question

Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the dwelling in Australia 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 ending 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

The deceased died in early 20XX.

The property was acquired by the deceased on or about 19XX. A residence was built on this site and she occupied the site immediately after the property was competed.

The property was used as the main residence of the deceased until death. After death the property was occupied by Beneficiary A, who paid rent of $YYY per week to occupy the property. The Will permitted this beneficiary to rent this property for a period of X months.

The trustee appointed to administer the estate took no effective action to finalise the estate, despite strong direction from siblings. Eventually, the other siblings took legal action against this trustee.

In their application to the court, the other siblings alleged that the current trustee breached a fiduciary duty by taking actions that were solely for their own benefit. The court appointed a new trustee in mid-20YY. It also ordered the trustee to provide financial records for X years, this order was not complied with by the trustee, who then registered as a bankrupt.

The new trustee listed the property for sale, and it was sold at auction in late 20YY with settlement shortly thereafter.

Relevant legislative provisions

Income Tax Assessment Act 1997 Subsection 118-195(1)