Edited version of private advice

Authorisation Number: 1052004746816

Date of advice: 11 July 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/20xx

Relevant facts and circumstances

The deceased passed away on xx/xx/xxxx.

The deceased acquired a half interest in the property before 20 September 1985, and the other half interest in the property after 20 September 1985.

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 granted on xx/xx/20xx.

Following the passing of the deceased, State border closures due to Covid 19 prevented one of the beneficiaries travelling to the location of the property to remove personal belonging from the property.

Once the restrictions on movement between states began to lift, a decision was made to progress the sale of the house with the objective of listing it for sale in the last quarter of 20xx.

However, a severe storm hit the location of the property damaging the power supply line to the property, as well as causing internal and external damage to the property. The time taken to repair the damage and restore power supply to the property caused a further delay in disposing of the property.

You entered into a contract to sell the property on xx/xx/20xx with settlement occurring on xx/xx/20xx.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195

Income Tax Assessment Act 1997 section 118-145