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Edited version of private advice
Authorisation Number: 1051946498058
Date of advice: 21 February 2022
Ruling
Subject: Capital gains 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 settlement?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
3 September 20XX
Relevant facts and circumstances
You advised that:
The land was purchased prior to September XXXX.
The building on the property started in 198X, that was completed in 198X.
The property was the deceased's principal place of residence. Both the deceased resided until the wife of the deceased, your mum passed away on X June 201X.
Probate was granted on X September 201X.
The property was sold for $X,XXX,XXX on XX October 20XX.
All the beneficiaries of the deceased were entitled to a 1/5 share of the proceeds as per the Will.
As joint owners (tenants in common) after the death of your mother, all five siblings had a right to reside in the property.
It took X months before all the beneficiaries agreed to sell the property.
The beneficiary and daughter of the deceased lived with your mum and was her carer until she passed away on X June 20XX.
The property was XXXXX only principal place of residence at time of the deceased passing away and later until she could find a new place of residence.
The carer and the sister of all the other beneficiaries was allowed to live on the property by the beneficiaries until she was able to find a new place. Due to her availability and efforts to care for your mum, she was assumed to have the right to stay in the property until she found a new place.
The sole carer found it extremely difficult to find alternate accommodation after your mum's passing away as finding a reasonable rental property was extremely difficult and unable to meet the very high rental due to very high demand that delayed the final settlement.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10,
Income Tax Assessment Act 1997 section 118-195
Income Tax Assessment Act 1997 subsection 118-195(1)