Edited version of private advice

Authorisation Number: 1051993795506

Date of advice: 15 June 2022

Ruling

Subject: Commissioner's discretion - deceased estate

Question

Will the Commissioner allow an extension of time to XX December 20XX for you to dispose of your ownership interest in the dwelling and disregard the capital gain you make on the disposal?

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 ending 30 June 20XX

The scheme commences on:

XX July 20XX

Relevant facts and circumstances

The deceased died on XX July 20XX.

The deceased owned a dwelling which was the main residence until their death.

The deceased acquired the property after 1985

The dwelling was not used to produce assessable income.

The property was less than 2 hectares.

Probate was granted on XX October 20XX.

The first six months following the deceased's death were spent removing the household items of the deceased.

You live one hour away from the deceased's property.

You live in a metropolitan area which was affected by the COVID-19 lockdowns.

The deceased's property was within the same metropolitan area affected by the COVID-19 lockdowns.

The lockdown periods hindered your ability to travel to the property and prepare it for sale.

Opening the home for inspections was delayed due to the lockdown.

The property was originally scheduled for auction in August 20XX however this was delayed due to the lockdown.

The auction was postponed until XX November 20XX.

The property sold the day prior to the auction on XX November 20XX.

Settlement date was XX December 20XX.

Settlement occurred more than two years after the deceased's death.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195