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Edited version of private advice
Authorisation Number: 1051973228042
Date of advice: 13 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 ato.gov.au for 'QC 66057'.
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/XXXX.
The deceased acquired the property in or about 19XX.
The property was the main residence of the deceased throughout their ownership period.
The deceased did not leave a will.
On XX/XX/XXXX, person A (the Administrator) gave notice of his intention to apply for Letters of Administration of the deceased's estate.
There were a number of requisitions on the application for Letters of Administration which were complex and required significant time to compile the additional information that was required.
Letters of Administration on intestacy were issued on XX/XX/XXXX.
At the time of the deceased's passing, the property was also occupied by person B and their children as well as the deceased.
The property was not being used to produce assessable income just before the passing of the deceased.
After the passing of the deceased person B refused to vacate the property. The administrator of the estate had to take legal action to have person B removed from the property.
Following the removal of person B, the property required extensive rubbish removal, hazardous treatment and cleaning. Restrictions on movements because of measures in place to combat CoVid 19 caused delays in cleaners being able to attend the property.
The property was listed for sale in XX/XXXX and an offer was accepted within two weeks of the property being advertised on the market. Settlement occurred on XX/XX/XXXX.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)