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Edited version of private advice
Authorisation Number: 1051999830126
Date of advice: 29 June 2022
Ruling
Subject: CGT - deceased estates
Question
Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the dwelling 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:
1 July 20XX
Relevant facts
The deceased passed away on XX XX 20XX.
The deceased inherited the ownership interest in the dwelling prior to 20 September 1985.
The dwelling was the main residence of the deceased throughout their ownership period.
The dwelling has never been used to produce assessable income.
The land area is less than 2 hectares in size.
The deceased's Will provided their child, child A a right to reside in the dwelling during their lifetime while they were, in the opinion of the Trustee residing permanently in the dwelling.
The Will further stated that on the termination of the right to reside, the dwelling should form part of the residue of the estate.
Child A relinquished their right to reside on XX XX 20XX when they moved into an aged care facility.
The Trustee then began the process to prepare the dwelling for sale.
The dwelling was listed for sale a short time later.
The sale contract for the dwelling was signed on XX XX 20XX and settlement occurred on XX XX 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195
Income Tax Assessment Act 1997 subsection 118-120(3)