Edited version of private advice

Authorisation Number: 1051920266998

Date of advice: 11 November 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 just before the deceased's death and was not then being used for the purpose of producing assessable income.

Initially there was a delay in the administration of the estate as the executor was one of the children of the deceased and they suffered a long period of grief as the deceased's death was unexpected and had closely followed the death of the executor's other parent which was only x months prior.

Subsequently, delays in preparing the property for sale were also encountered due to pandemic restrictions. The executor of the estate was impacted by lockdowns imposed by the government.

The property 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, being less than X months after the expiry of the 2 year period.

Relevant legislative provisions

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