Edited version of private advice

Authorisation Number: 1051909044921

Date of advice: 13 October 2021

Ruling

Subject: Commissioner's discretion - deceased estate

Question

Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the dwelling and disregard the capital gain or loss you made on the disposal?

Answer

Yes. Having considered your circumstances and the relevant factors the Commissioner will allow an extension of time. Further information about the Commissioner's discretion can be found by searching 'QC 66057' 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 passed away on xx/xx/20xx.

The deceased owned a property which was their main residence throughout their ownership period.

Following the passing of the deceased, the original will was not able to be located. This resulted in a lengthy process to obtain probate. Probate was granted to executor A and B on xx/xx/20xx.

Your legal advisors recommended that you wait and not commence preparing the property for sale for six months in case the Will was contested.

During the administration of the estate the sudden passing of the co-executor's spouse and later the passing of the co-executor, impacted the administration of the estate.

Also, preparation of the property for sale was impacted by pandemic restrictions.

The dwelling was listed for sale as soon as practically possible after all circumstances were resolved.

The property was listed xx/xx/20xx with settlement occurring xx/xx/20xx.

Relevant legislative provisions

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