Edited version of private advice

Authorisation Number: 1051977832339

Date of advice: 3 May 2022

Ruling

Subject: Commissioner's discretion - deceased estate

Question

Will the Commissioner allow an extension of time to XX December 20XX for you to dispose of your ownership interest in the dwelling and disregard the capital gain you make on the disposal?

Answer

Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time. Further information about this 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 owned a dwelling which was the main residence until their death.

The property was acquired after 1985.

The property was less than two hectares.

The dwelling was not used to produce assessable income.

Probate was filed on XX December 20XX.

Probate was granted on XX April 20XX.

There was a dispute between the children of the deceased that was required to be resolved.

The executor was limited in their abilities to carry out their duties due to difficulties in using electronic technology.

The title of the property had been lost and had to be replaced, the executor's name was affixed on XX July 20XX.

The property was listed to auction on XX August 20XX however the auction and inspections were cancelled due to the COVID-19 lockdown.

The property was within a metropolitan area affected by COVID-19 lockdowns.

The property was sold when the lockdown ended.

Contract date was XX October 20XX.

Settlement date was XX December 20XX.

Settlement occurred more than two years after the deceased's death.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195