| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1052013372622
Date of advice: 27 July 2022
Ruling
Subject: Commissioner's discretion - deceased estate
Question
Will the Commissioner exercise the discretion to 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 this discretion can be found by searching 'QC 66057' on ato.gov.au.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
At some time after 1985, the deceased acquired the property and lived in it as their main residence up to the time of their death. It was never used for the purpose of producing assessable income.
The property size is less than 2 hectares.
Later, the deceased passed away. Their will provided that the property was to pass to their 2 children as beneficiaries of the estate.
During the 2 year period, beneficiary personal circumstances impacted on their ability to attend to the administration of the estate.
COVID-19 restrictions began and both beneficiaries were in high risk categories and limited their exposure.
Subsequent to the easing of restrictions, a contract for sale of the property was entered into a couple of weeks after the expiry of the 2 year period and settlement took place a short time later.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 118-195