Edited version of private advice

Authorisation Number: 1051994582889

Date of advice: 17 June 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 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:

Year ending 30 June 20XX

The scheme commences on:

Xx/xx/xxxx

Relevant facts and circumstances

The deceased passed away on xx/xx/xxxx.

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

The property has never been used to produce assessable income.

Probate was applied for on xx/xx/xxxx. However, due to delays outside the control of the executor probate was not granted until xx/xx/xxxx.

At the time probate was granted COVID-19 restrictions were in place which caused significant delays in the processing of the estate and the sale of the property.

The property was put on the market on xx/xx/xxxx. Soon after the property was put on the market, public health orders were reintroduced by the State Government in response to the COVID-19 pandemic. These public health orders restricted movements into and out of the local government area in which the property is situated. In response to these restrictions, you suspended the sale of the property.

Soon after the easing of COVID-19 lockdown restrictions in your local government area, the property was placed back on the market.

You entered into a contract to sell the property on xx/xx/xxxx with settlement occurring on xx/xx/xxxx.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195