Edited version of private advice

Authorisation Number: 1052011902962

Date of advice: 26 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 dwelling and disregard the capital gain you make 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 'QC 66057' on ato.gov.au.

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

The deceased owned a property that was acquired prior to 1985.

The deceased passed away in March 20XX.

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

The property was not used to produce assessable income from the date the deceased passed away.

The property is less than two hectares.

Probate was granted in June 20XX.

A real estate agent was contacted in June 20XX with the aim of selling the property at auction within 6 weeks.

Covid-19 restrictions prevented the property from being sold and prevented the executor from accessing the property and removing household items.

The real estate agent advised the executor to postpone the sale of the property until early the following year due to Covid-19 restrictions.

In February 20XX, the executor was diagnosed with a medical condition and required surgeries and treatment until the end of 20XX.

In 20XX, when the executor's health improved, the real estate agent was contacted again to organise the sale of the property at auction.

A contract was entered into to sell the property in March 20XX, approximately two years after the date of the deceased's death, with settlement occurring in May 20XX.

Relevant legislative provisions

Income Tax Assessment Act 1997 subsection 118-195(1)