Edited version of private advice

Authorisation Number: 1051980354040

Date of advice: 10 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 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 'QC 66057' on ato.gov.au.

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

The deceased passed away on DD/MM/YYYY.

The deceased's spouse acquired the dwelling as the sole owner prior to 20 September 1985.

The dwelling was transferred to the deceased through execution of the spouse's Will after 20 September 1985.

The land adjacent to the dwelling is less than two hectares in area.

The deceased moved into an aged care facility in MM/YYYY.

The dwelling was the main residence of the deceased for their entire ownership period and not used for income producing purposes.

A solicitor was engaged on DD/MM/YYYY by the executors to facilitate the title transfer and application for probate.

Probate was granted on DD/MM/YYYY.

Delays outside of your control prevented the title transfer occurring within a timely manner.

A meeting with a real estate agent occurred on DD/MM/YYYY in preparation for the sale of the dwelling.

The title deed was provided to the executor on DD/MM/YYYY allowing the sale of the dwelling to progress.

Contract of sale signed on DD/MM/YYYY.

Settlement occurred on DD/MM/YYYY.

Relevant legislative provisions

Income Tax Assessment Act 1997 subsection 118-145(1)

Income Tax Assessment Act 1997 subsection 118-145(3)

Income Tax Assessment Act 1997 subsection 118-195(1)