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Edited version of private advice
Authorisation Number: 1051959156550
Date of advice: 31 March 2022
Ruling
Subject: Commissioner's discretion - deceased estate
Question
Will the Commissioner exercise his discretion under section 118-195 of the Income Tax Assessment Act 1997 to extend the two-year period to dispose of the dwelling?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will extend the two-year period to dispose of the dwelling to the date of settlement. 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 commences on:
1 July 20XX
Relevant facts and circumstances
The deceased died several years ago.
The dwelling at the property was purchased by the deceased shortly before they died.
The dwelling was the deceased's main residence for the whole of their ownership period.
The property suffered damage in a fire.
The deceased died intestate.
Letters of Administration was granted in a later year.
The property was less than two hectares.
The property was never used to produce income.
The reasons the property was sold outside the two-year time period was due to extensive repairs required to be carried out to enable the property to be sold.
In addition to this the fact that the deceased died intestate meant that letters of Administration needed to be granted and this process took time.
The property was not transferred to you until about two years after the date of death and you then began the process of getting it ready for sale.
The date of settlement was over two years after the date of death.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195