Edited version of private advice

Authorisation Number: 1051972164570

Date of advice: 12 April 2022

Ruling

Subject: CGT - 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.

This ruling applies for the following period:

Year ending 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

The property was the deceased main residence.

The deceased passed away sometime after 20 September 1985.

The property was not used to derive income.

The property was the deceased's main residence just before he/she died.

In 2018 Probate was granted to the executors ('you').

You were significantly delayed in the administration of the estate due to the deterioration of your mother's health.

You inherited the deceased's interest in the property and this interest was transferred to you.

The property was less than 2 hectares.

The reasons for the delay in selling the property within 2 years was as follows:

•                    You were supplying regular assistance for your mother and towards the latter stages of her life she was requiring daily care, whilst you were also working full time.

•                    Your mother then passed away in 2020 which halted the administration of the estate even more.

•                    Your mother's estate then caused a dispute between all executors and proceedings commenced in the Supreme Court of NSW in 2021

The property was sold outside the two-year period.

The property was sold in 2021.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195

Income Tax Assessment Act 1997 subsection 118-195(1)