| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1051942100639
Date of advice: 27 January 2022
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 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 ending 30 June 20XX
The scheme commences on:
17 October 20XX
Relevant facts and circumstances
The deceased owned a dwelling (the Dwelling).
The deceased passed away sometime after 20 September 1985.
The Executors of the Estate are Person A and Person B.
The beneficiaries of the Estate are the deceased's children Person A, Person B and Person C (You)
The deceased's spouse continued to reside at the Dwelling after the deceased death.
The deceased provided their spouse a right to reside at the Dwelling in their will.
The deceased's spouse passed away unexpectedly a short time later. The spouse was living in the Dwelling at the time of death.
The family suffered severe emotional distress from the unexpected death of the deceased's spouse, who was only supposed to be in hospital for the day. COVID restriction in place at the time meant that You could not even see them during their final hours.
After making the arrangements for the spouse, you set about selling the dwelling. Your efforts were further hampered by the COVID restrictions, and your ability to meet, discuss and consult with relevant parties were limited.
You thought that the Dwelling had been sold, however the sale fell through.
A dispute between the beneficiaries arose but was resolved through reconciliation XX months after the sale had fallen through.
The dwelling was sold two months later.
The contract was signed and settlement will occur shortly after.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 118-195