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Edited version of private advice
Authorisation Number: 1051975161693
Date of advice: 4 May 2022
Ruling
Subject: CGT - Commissioner's discretion to extend the two-year period to dispose of a dwelling acquired from a deceased estate
Question
Will the Commissioner allow an extension of time for you to dispose of your ownership interest in a dwelling (the property) 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 in XXXX.
The deceased acquired the property in XXXX through a transfer of ownership from the Estate of her Late Husband who purchased the property in XXXX.
The property was the main residence of the deceased throughout their ownership period.
The property has never been used to produce assessable income.
Probate was granted in XXXX.
The Executors of the Estate named in the deceased's Will were Person A and Person B.
Due to the length of time living at the property, the deceased acquired considerable personal effects including large machinery that required specialist removal by Person A.
Following the grant of probate, the Executors of the Estate attempted to prepare the property for sale but were impeded by the 2019/2020 Bushfires and 2020/2021 COVID-19 restrictions.
The property was listed for sale as soon as practicable after personal effects were removed.
The property was sold under contract in XXXX with special conditions of some general repairs to be completed by Person A.
Person A passed away unexpectedly in XXXX before repairs could be undertaken and it was then left for Person B to arrange contractors to complete the repairs.
A Notice of Death was then required for Person A as Co-Executor of the Estate to complete settlement; Notice of Death was registered in XXXX.
Settlement occurred in XXXX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195