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Edited version of private advice
Authorisation Number: 1051978019109
Date of advice: 13 May 2022
Ruling
Subject: CGT - deceased estate - Commissioner's discretion to extend the two-year period
Question
Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the 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:
The year ended 30 June YYYY
The scheme commences on:
DD/MM/YYYY
Relevant facts and circumstances
The deceased passed away on DD/MM/YYYY.
The deceased acquired the property jointly with their spouse after 20 September 1985.
The deceased's spouse passed away before the deceased.
The property was the main residence of the deceased throughout their ownership period.
The property has never been used to produce assessable income.
The property was less than two hectares in size.
The deceased left the property to their three children (the beneficiaries) equally with no life tenancies granted.
The sensitivity of the circumstances of the surviving beneficiaries contributed to the delay in disposing of the property.
COVID-19 restrictions delayed the beneficiaries' ability to arrange for sale of the property.
A contract for sale of the property was entered into on DD/MM/YYYY with settlement occurring on DD/MM/YYYY.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195