Edited version of private advice

Authorisation Number: 1052013552231

Date of advice: 1 August 2022

Ruling

Subject: CGT - deceased estates - 2 year discretion

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 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:

1 July 20XX

Relevant facts

The deceased passed away on XX XXX XX.

The deceased acquired an ownership interest in the dwelling prior to 20 September 1985 with their late spouse.

The spouse passed away passed away in 19XX and the deceased became the sole surviving owner.

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

The dwelling has never been used to produce assessable income.

The land area is less than 2 hectares in size.

The deceased's Will provided their children Person A, Person B and Person C a right to reside in the dwelling during their lifetime and pay all rates, taxes and other outgoings until one or more of the children wish to sell the property.

The children continued to reside in the dwelling until Person A passed away in 20XX and Person B moved into a nursing home in early 20XX. Person C has recently passed away.

Person C continued to live in the dwelling as their main residence until XX XXX 20XX when they passed away.

The dwelling was prepared for sale and placed on the market for sale.

Settlement for the sale occurred recently.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195

Income Tax Assessment Act 1997 subsection 118-120(3)