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Edited version of private advice
Authorisation Number: 1051945423159
Date of advice: 4 February 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 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 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 owned a property that was acquired prior to 1985. The dwelling at the property was their main residence. It was less than two hectares and was not used for income producing purposes.
The deceased died more than two years ago.
On xx/xx/xxxx Probate was granted to A and B.
The executors experienced some complications with the Will regarding the distribution of gifts to family members of the deceased.
The executors began preparing the property for sale on xx/xx/xxxx. Preparation included: landscaping lawns and gardens, replacing a pool pump, attending to fencing issues, removal of a barbecue.
The executors sought support from an external administrator, however as a result of Covid lockdowns, staff at the external administrator commenced working from home and correspondence was difficult.
Covid lockdowns meant that the executors experienced difficulties with preparing the property for sale and communicating with the external administrator.
The dwelling property was vacant and correspondence was at times incorrectly sent there.
Further complications arose when the parent of one of the executors was hospitalised and required ongoing support. Further to this, one of the executors experienced a medical issue whilst providing this support.
The property was listed for sale on xx/xx/xxxx
The property was sold on xx/xx/xxxx with settlement scheduled to occur more than two years after the deceased's death.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)