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Edited version of private advice
Authorisation Number: 1051983631142
Date of advice: 20 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 (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 ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased passed away in 20XX.
The property was the deceased's principal residence at the time of death.
The property was used to produce assessable income from the time the deceased moved into an aged care home.
The trustee (or the deceased) has chosen to apply the absence rule as the property was used for income producing purposes for less than six years.
The property was situated on less than 2 hectares of land.
Since the deceased passed away, the sensitivity of your personal circumstances means that you were not be able to dispose of the property within the two-year period.
You entered into a contract to sell the property with settlement occurring in 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195