Edited version of private advice

Authorisation Number: 1051980063991

Date of advice: 9 May 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 dwellings (the properties) 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 had been a foreign resident for less than six years at the time of their passing.

The deceased acquired the properties prior to 20 September 1985.

The properties are less than two hectares in size.

One property was used by the deceased as their main residence until they left Australia. The other property was in disrepair and, to the best of your knowledge, nobody resided in the property.

The state of repair of the properties indicated that nobody lived in them from the deceased's date of death.

There are no records to indicate that the deceased had earned rental income from either of the properties.

Personal items were stored in both properties.

The deceased did not leave a will or a document purporting to embody the testamentary intentions of the deceased and thus died intestate.

The deceased was not in a de facto relationship and had numerous cousins who were eligible beneficiaries of the deceased's estate.

The complexity of the deceased estate delayed the completion of administration of the estate.

The properties were sold at auction as soon as practically possible after you were granted letters of administration.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195