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Edited version of private advice
Authorisation Number: 1052007325393
Date of advice: 15 July 2022
Ruling
Subject: Commissioner's discretion - deceased estates
Question
Will the Commissioner grant an extension to the 2-year period until May 20XX to dispose of the property you inherited under your father's will?
Answer
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 and circumstances
Your parents owned a property (the Property). They retired to the town where the Property was located many years ago have and lived there from then onwards.
Parent A passed away several years ago. Parent B continued to live at the Property until they passed away approximately two and a half years ago.
A few weeks after Parent B died, COVID restrictions were imposed.
Probate was granted approximately eight months after the date of death. Granting of Probate was delayed as the solicitors were located in another state.
The transfer of the Property into you and your siblings' names was registered the following year.
During this time, the Property remained empty. The gardens became overgrown, and maintenance of the Property was restricted as access to trades people was difficult.
In addition, your sibling lives in a city where for a period of several months they were in lockdown and unable to travel out of their local government area.
You and your sibling, along with some other family members, planned to travel to the Property around the Christmas period of the year following the date of death. One of your sibling's family members contracted an illness once at the Property at this time. This meant that no other family members could come to assist with the clean-up and preparation of the house for sale at this time.
With the easing of public health restrictions, you were able to commence preparing the Property for sale a couple of months early the following year. The Property was placed on the market and sold shortly afterwards.
Settlement occurred several weeks later.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195(1)