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Edited version of private advice
Authorisation Number: 1052012492641
Date of advice: 26 July 2022
Ruling
Subject: Commissioner's discretion - deceased estate
Question
Will the Commissioner exercise his discretion under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the two-year period to dispose of the dwelling to XX December XXXX?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will extend the two-year period to dispose of the dwelling to XX December XXXX. Further information about this 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 died on XX July XXXX leaving a will dated XX December XXXX.
The deceased acquired the property in 19XX.
The property was the deceased's main residence just before they died.
The property was less than 2 hectares.
The property was not used to produce income.
On XX July XXXX letters of Administration with the Will annexed were granted to State Trustees.
The executor predeceased the deceased.
A friend of the deceased was given a life interest in the property.
The life interest vacated the property in XXXX.
Once the life interest had vacated the property the trustee commenced preparing the property for sale immediately
Due to lock downs and travel restrictions in relation to the pandemic this meant there were delays in this process.
A contract to purchase the property was signed on XX November XXXX and settlement occurred on XX December XXXX.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 118-195