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Edited version of private advice
Authorisation Number: 1051912401421
Date of advice: 20 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 located 'X' and disregard the capital gain you make on the disposal?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion for up to two hectares of land with your dwelling under subsection 118-195(1) of the ITAA 1997 and allow an extension of time. Further information about this discretion can be found by searching 'QC 66057' on ato.gov.au
This ruling applies for the following period
Year ended 30 June 20XX
The scheme commences on
1 July 20XX
Relevant facts
The deceased acquired a dwelling. (the dwelling).
The deceased passed away in 20XX. (The deceased)
The dwelling is located in a retirement village which is managed by retirement village operator.
One of the executors resides in a different state and the COVID-19 travel restrictions have caused delays in preparing the dwelling for sale.
Recently the retirement village operator identified a number of repairs that needed to be undertaken before they would authorise the transfer of the dwelling.
Delays were experienced in having these repairs completed due to COVID-19.
The dwelling remained vacant until the sale.
A purchaser for the dwelling was located and settlement for the sale occurred recently.
Relevant legislative provisions
Income Tax Assessment Act 1997 subdivision 115-A
Income Tax Assessment Act 1997 section 102-20
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 118-120
Income Tax Assessment Act 1997 section 118-130
Income Tax Assessment Act 1997 section 118-195