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Edited version of private advice
Authorisation Number: 1051971226684
Date of advice: 14 April 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 ending 30 June 20xx
The scheme commences on:
1 July 20xx
Relevant facts and circumstances
The deceased passed away on xx/xx/20xx.
The deceased acquired the dwelling after 20 September 1985.
The land adjacent to the dwelling is less than two hectares in area.
The dwelling was the main residence of the deceased and not used to produce assessable income.
In xx/20xx a solicitor was engaged to arrange Probate and Certificate of Title.
Probate was granted on xx/xx/20xx.
Circumstances beyond your control prevented you accessing the dwelling for several months.
As soon as the beneficiaries were able to access the dwelling, they prepared it for sale.
A storm then caused significant damage to the roof and interior of the dwelling.
The storm damage was not discovered for some time later when the beneficiaries accessed the interior of the dwelling which revealed a significant portion of the ceiling had caved in with water damage evident to interior walls.
Issues beyond your control led to the repairs being completed in stages over several months.
A real estate agent was engaged in xx/20xx upon completion of the repairs.
The real estate agent offered a quick sale to the beneficiaries without any marketing which was accepted, a buyer was located but then backed out before contracts were signed.
The dwelling was then photographed and marketed a week later with an open home scheduled then offers received, one of which was accepted and a contract of sale signed on xx/xx/20xx.
The settlement occurred on xx/xx/20xx, being less than three months after the expiry of the two-year period.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)