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Edited version of private advice
Authorisation Number: 1051959110207
Date of advice: 15 March 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 made 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 ended 30 June 20xx
The scheme commences on:
1 July 20xx
Relevant facts and circumstances
The deceased passed away on xx/xx/20xx.
The dwelling was the main residence of the deceased and not used for the purposes of producing assessable income before their death.
The land adjacent to the dwelling is less than two hectares in area.
There was a delay in the administration of the estate due to legal proceedings.
The dwelling was initially listed for sale and contracts exchanged on xx/xx/20xx.
Due to the court proceedings, the Executor was not able to complete the initial contracts for sale and they were rescinded in xx/20xx.
Once the legal proceedings were finalised, probate was granted on xx/xx/20xx to the Executor.
A real estate agency was engaged, and the agency sales agreement was signed on xx/xx/20xx.
The dwelling was auctioned on xx/xx/20xx with the contract of sale signed on the same day.
Settlement occurred on xx/xx/20xx, a few months after probate was granted.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)