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Edited version of private advice
Authorisation Number: 1051981604014
Date of advice: 18 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 acquired the dwelling prior to 20 September 1985 with their spouse.
The spouse's ownership interest in the dwelling transferred to the deceased upon their passing after 20 September 1985.
The dwelling was the main residence of the deceased and never used for the purpose of producing assessable income.
The land adjacent to the dwelling is less than two hectares in area.
The deceased's Will named their two children A and B as equal beneficiaries of the estate.
Probate was granted on DD/MM/YYYY to B.
On DD/MM/YYYY a transmission application was lodged by B in their capacity as executor where the dwelling was transferred into the names of the beneficiaries, A and B with a 50% share each.
Circumstances beyond the control of the beneficiaries delayed the disposal of A's 50% share to B.
Contract of sale was signed on DD/MM/YYYY for A to sell their 50% share of the dwelling to B.
Sale of the property was completed on DD/MM/YYYY.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)