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Edited version of private advice
Authorisation Number: 1051920755414
Date of advice: 24 November 2021
Ruling
Subject: CGT - deceased estate
Question
Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time to the two-year period until 23 February 2021?
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 23846' on ato.gov.au
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 June 20XX
Relevant facts and circumstances
The property was purchased by the Deceased after 20 September 1985 (the Dwelling).
The Dwelling was the Deceased's main residence at their time of death.
The Dwelling was not used for income producing activities and no income has been received from the Dwelling after the passing of the Deceased.
The beneficiaries and trustees of the Deceased's will include the following:
• Person A;
• Person B; and
• Person C (the Trustees).
Approximately nine months after the Deceased passed away probate was granted.
During the period between engaging a real estate agent to the settlement of the property the Trustees faced major delays and interruptions due to the impacts of the Covid -19 restrictions in the state where the Dwelling is located.
The State Government specifically advised that preparing a property for sale did not meet one of the reasons to leave home during a lockdown period.
A period of time later a real estate agent was first appointed to assist in the sale of the property.
The property was not refurbished to improve sale price.
The Trustees were required to remove all contents including furniture and personal effects from the property before it could be listed for sale.
The Trustees attempted to list the property for sale on three dates.
Approximately two years after the Deceased passed away the property was sold.
A short time later settlement occurred on the property.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 118-130
Income Tax Assessment Act 1997 section 118-195