Edited version of private advice

Authorisation Number: 1051976458484

Date of advice: 29 April 2022

Ruling

Subject: CGT - deceased estates - extension to the two-year period to dispose of an inherited dwelling

Question

Will the Commissioner allow an extension of time to DD/MM/YYYY 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 XXXX

The scheme commences on:

1 July XXXX

Relevant facts and circumstances

The Deceased owned a dwelling.

The Deceased acquired the dwelling after 20 September 1985.

The dwelling size is less than 2 hectares.

The Deceased lived in it as their main residence throughout the ownership period.

The Deceased passed away.

The Public Trustee of State A was the executor of the Deceased's will.

Within three months of the Deceased's death, the Deceased's two daughters (The Beneficiaries) disputed the legality of the Will as it did not make an adequate provision for their proper maintenance and support.

An application to the court was filed to establish the Deceased's capacity to make the last Will.

A limited Grant of Administration was granted in Winter XXXX.

A full Grant of Administration was obtained later in Winter XXXX.

The dwelling has never been used to produce assessable income.

The dwelling was listed for sale in Spring XXXX.

A contract to sell the dwelling was entered into in Spring XXXX.

The dwelling was sold just after 4 years from the date of the deceased's death.

Settlement occurred in Summer XXXX.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 104-10

Income Tax Assessment Act 1997 section 118-195