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Edited version of private advice
Authorisation Number: 1051901655740
Date of advice: 27 September 2021
Ruling
Subject: CGT - deceased estate
Question
Will the Commissioner allow an extension of time to X April 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 ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You are the sole trustee and beneficiary of your parent's estate. Your parent died in mid-20XX.
Your parent acquired the property before the introduction of CGT in Australia and has always used this property as the main residence.
Your failing health contributed to the delays in selling this property. You were diagnosed with a serious health condition at around the date of your parent's death. You underwent surgery and took sick leave.
Several years later you relapsed and over the subsequent months investigated various medical options.
You also suffered delays due to the restrictions imposed by the Covid Pandemic which delayed your medical treatments and delayed efforts to sell the property.
You signed a contract to sell the property in early 20XX and the property settled shortly thereafter.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subsection 118-195(1)