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Edited version of private advice
Authorisation Number: 1051942122788
Date of advice: 4 February 2022
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
The scheme commences on:
4 June 20XX
Relevant facts and circumstances
The Deceased owned a Dwelling and lived there as their main residence.
The Deceased passed away sometime after 20 September 1985.
A month later the process of probate was initiated, with probate completed XX months after death.
Person A was nominated as executor of the will, and the deeds of the Dwelling were transferred to Person A in their capacity as executor.
In December 20XX communication between Person A and their Siblings began to deteriorate. The Siblings were also beneficiaries of the Deceased's will.
By April 20XX all communication from Person A had ceased.
Attempts at communication with Person A continued throughout the next few months.
By October 20XX, communication issues with Person A were ongoing, so the Siblings sought legal advice and assistance from the Police and the Health Department.
In November 20XX the Siblings again sought help from the Police and the Health Department.
Person A was diagnosed with an illness and admitted to hospital for a period of time. Person A was placed under the care of Community Health and was medicated to aid recovery.
After being discharged from hospital, Person A started rehabilitation at home. The rehabilitation involved visits from health professionals and taking medication.
The medication that Person A was taking meant they were not capable of the estate administration.
Several months later Person A's health had improved and communication began in relation to selling the Dwelling.
The Dwelling was listed for sale through a Real Estate Agent.
A purchase offer of $XXX was accepted by Person A and the other beneficiaries.
The Contract was signed and settlement occurred, two years and eight months after the Deceased's death.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 118-195