Edited version of private advice

Authorisation Number: 1051984360637

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 (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 before 20 September 1985.

The property was less than 2 hectares in size.

The property was the main residence of the deceased throughout their ownership period.

The property has never been used to produce assessable income.

The deceased's X children were appointed as executors of the deceased's estate.

The deceased's Will provided that the property was to be equally distributed to the deceased's X children as beneficiaries (the Beneficiaries). As such, each of the Beneficiaries inherited a XX% interest in the property.

At the time of the deceased's passing, the Beneficiaries agreed that Beneficiary A would acquire the remaining XX% interest in the property from the other beneficiaries, making Beneficiary A sole owner of the property.

Due to circumstances outside of their control, there was a delay before the ownership interests of the other beneficiaries could be transferred to Beneficiary A. The transfer took place X months after the expiry of the two-year period.

The property remained vacant from the deceased's date of death until the transfer of the ownership interests to Beneficiary A.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195