Edited version of private advice

Authorisation Number: 1052018257302

Date of advice: 10 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 private ruling applies for the following period:

Year ending 30 June YYYY

The scheme commences on:

1 July YYYY

Relevant facts

The deceased passed away.

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

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

The dwelling was the main residence of the deceased just prior to passing away.

The dwelling has never been used to produce assessable income.

The land area is less than X hectares in size.

The title to the dwelling was transferred to the beneficiaries on DD MM YYYY.

The beneficiaries reside a significant distance from the dwelling. X beneficiaries reside in different states.

COVID-19 has impacted on your ability to travel to the dwelling to prepare the dwelling for sale.

Some of the beneficiaries (and their families) have experienced serious medical conditions which has also caused delays.

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

An offer for the sale of the dwelling was accepted recently.

Settlement for the sale occurred more than X years after the deceased passed away.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195

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