Edited version of private advice

Authorisation Number: 1052025168058

Date of advice: 24 August 2022

Ruling

Subject: Commissioner's discretion - deceased estate

Question

Will the Commissioner allow an extension of time to X March 20XX 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 this discretion can be found by searching QC 66054 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 passed away XXXX.

The deceased's last will and testament was dated XXXX.

Probate was granted on XXXX.

The property was the deceased main residence and was purchased prior to 1985.

All parties involved in the estate agreed the property was to be sold.

The property contained a large quality of antiques, artwork, furniture and personal effects that required valuing and removal.

Due to prolonged COVID19 restrictions and lockdowns in Melbourne until October 2021, the deceased family found it difficult to attend the property to remove the items from the property due to living outside the state Government imposed travel radius of 5 kilometres.

A removalist was booked and cancelled multiple times due to COVID19 restrictions.

A real estate agent was engaged, and the property listed for sale in XXXX.

The property was sold at auction on XXXX.

A contract of sale was entered into and signed on the XXXX with a settlement date of XXXX.

Settlement was bought forward, and the property was settled, and ownership ended on the XXXX.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 104-5

Income Tax Assessment Act 1997 section 118-195