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Edited version of private advice
Authorisation Number: 1051934409627
Date of advice: 16 December 2021
Ruling
Subject: CGT - 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 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 66057' on ato.gov.au
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
4 December 20XX
Relevant facts and circumstances
The deceased owned a property.
The dwelling was the deceased's main residence.
The deceased passed away on XX September 19XX.
As per the terms of the Will, the Deceased's child was given a right to reside in the dwelling. Upon the termination of the right to reside, rest and residue share will be given to five children of the Deceased.
The Deceased's child moved out of the dwelling and into a nursing home on X December 20XX.
Verbal notification was received that the Deceased's child had moved out of the dwelling and into permanent nursing home on XX January 20XX, with written confirmation received a couple of months later.
Correspondence was sent requesting details for all residuary beneficiaries (some had moved and some were deceased so executor details were required) on XX March 20XX.
An offer to purchase the dwelling was received from some neighbours soon after.
Various investigations were undertaken for the executors of residuary beneficiaries.
Further details were provided for the executors of residuary beneficiaries.
Instructions were received from all relevant parties to accept the offer from the neighbours and not list the dwelling on the open market on XX May 20XX.
The Contract was signed and settlement occurred shortly after.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 118-195