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Edited version of private advice
Authorisation Number: 1051951764205
Date of advice: 18 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 house 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 this discretion can be found by searching 'QC 66057' on ato.gov.au.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
At some time after 1985, the deceased bought the house, and it was their main residence until they passed away.
Shortly after, the house was first listed for sale. However, after several months, the executor decided to take the house off the market and list for rent due to the uncertainty and restrictions of the COVID-19 pandemic. A tenant signed a 12-month lease.
During the period of the lease, the house was relisted for sale. It sold and settled to coincide with the lease expiry.
The house settled within 3 days after the two-year period expired.
Relevant legislative provisions
Income Tax Assessment Act 1997 subdivision 115-A
Income Tax Assessment Act 1997 section 102-20
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 118-120
Income Tax Assessment Act 1997 section 118-130
Income Tax Assessment Act 1997 section 118-195