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Edited version of private advice
Authorisation Number: 1051961724333
Date of advice: 17 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 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 ending 30 June 20XX
The scheme commences on:
24 January 20XX
Relevant facts and circumstances
The Deceased owned a dwelling and had done so for over forty years.
The Deceased lived in it as their main residence.
The Deceased passed away.
The Deceased's only child was the Executor of The Estate.
After the Deceased's death, the Executor began the process of preparing the dwelling for sale, including significant amounts of contents being donated to charity and/or taken to the tip.
The dwelling is located on the 10th floor of the building. It is serviced by one small lift, fitting approximately six people. This made the task very difficult.
The Executor had also suffered several health impairments that impacted upon their physical ability.
In 20XX the Executor had suffered a medical event at the age of XX.
In early 20XX the Executor had also had medical treatment for an illness which was a significant factor that contributed to the development of another illness in October 20XX.
The Executor had to be hospitalised with this illness and then spent many months confined to a bed. They experienced significant ongoing pain and the side effects of the medication (nausea, dizziness, headache and blurred vision) impacted on their ability to perform more complex tasks.
The Executor recovered towards the end of 20XX and was once again capable of performing physical tasks.
In February 20XX Australia experienced the onset of COVID-19. The Executor and the dwelling are based in City A. City A experienced several lengthy lockdowns. During this time the Executor's ability to complete tasks was restricted as they were not able to travel more than 5 km from home.
At the end of the final State Government imposed lockdown, the dwelling was cleaned, painted and made fit for sale.
The dwelling was listed for sale with expressions of interest closing in December 20XX.
The dwelling was sold with settlement occurring on XX March 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 118-195