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Edited version of private advice
Authorisation Number: 1051987162139
Date of advice: 9 June 2022
Ruling
Subject: CGT - deceased estates
Question
Will the Commissioner exercise his discretion under section 118-195 of the Income Tax Assessment Act 1997 to extend the two-year period until 25 May 20XX to dispose of the deceased's ownership interest in the dwelling for up to 2 hectares?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time. Further information about this 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:
Year ended 23 March 20XX
Relevant facts and circumstances
The deceased owned the property that was purchased on 31 October 20XX.
Person A was on the title of the property as a guarantor, but never lived in or contributed to the mortgage or costs associated with the property.
The deceased lived in the property as their main residence until their date of death with the child.
The property was never used to produce assessable income.
The property comprises of more than 2 hectares.
The deceased died in 20XX.
The deceased did not have a will and died intestate. The title of the land was then transferred to Person A.
Person A was hospitalised from throughout March 20XX.
Upon release from hospital Person A was unable to drive or perform day to day activities under doctors' orders from March 20XX to September 20XX.
From March 20XX to December 20XX, Person A travelled to State AA to assess the condition of the property and check on the wellbeing of the child.
From February 20YY to March 20YY, Person A travelled to State AA to prepare the property for sale.
From March 20YY to December 20YY, the child was clearing out the property, but the child's mental health was deteriorating and subsequently moved out of the property and went to live in Person A.
On 26 March 2020 the QLD borders closed.
On 29 March 2020 the State AA government announced that all travellers entering the state must undertake 14 days of quarantine.
On 26 June 2020 State AA announced state borders will open on 24 July 2020 depending on the public health advice.
On 10 July 2020 QLD borders re-opened to all states except NSW and VIC.
From 8 January 2021 to 11 January 2021 Brisbane entered a 3-day lockdown.
On 1 February 20XX, Person A travelled to State AA to put the property on the market.
A contract was entered for the sale of the property in April 20XX
The property settled in May 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195