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Edited version of private advice
Authorisation Number: 1052038610041
Date of advice: 27 September 2022
Ruling
Subject: CGT - deceased estates - 2 year discretion
Question
Will the Commissioner exercise the discretion provided in section 118-195 of the Income Tax Assessment Act 1997 to grant an extension of time to dispose of the property by the trust?
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 ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased died in early 20XX.
The will dated early 20XX granted the estate to the deceased's family.
The will called for the establishment of a testamentary trust of which the deceased's family were appointed trustees.
The dwelling is a pre-CGT asset that was occupied by the deceased until their date of death.
The deceased was a hoarder who had acquired a large number of possessions. Due to the extensive quantity of possessions, it required a large amount of time to sort through to secure items of value. There were delays in ascertaining the location, value, and identity of the estate assets.
The managing trustee lives outside of the Local Government Area and was impacted by the stay-at-home mandates during 20XX and 20XX. This contributed to the delay in administering the estate.
The deceased did not have extensive family and there were few people who were able to assist organising the property.
A trustee has an XXXX which prohibited them from handling the clean-up and sale.
The other trustee was XXXX XXXX during this period. This along with the lockdowns made it difficult to attend to the clean-up and sale.
The property was sold with a contract date of mid-20XX and a settlement date of mid-20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195