Edited version of private advice

Authorisation Number: 1051994871867

Date of advice: 16 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 deceased acquired the property before 20 September 1985.

The property is less than 2 hectares in size.

Probate was granted on xx/xx/xxxx.

The will of the deceased granted a life interest in the property to an individual.

Immediately following the passing of the deceased, the life interest holder moved into the property and continued to occupy the property as their main residence until their passing on xx/xx/xxxx.

Following the life interest holder's passing, immediate steps were taken to prepare the property for sale. However, efforts to clean the property and remove the life interest holder's personal possessions were delayed by lockdowns, border closures and travel restrictions imposed by the State Government to combat the spread of CoVid19.

The property was listed for sale soon after restrictions eased. 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