Edited version of private advice

Authorisation Number: 1052047538834

Date of advice: 21 October 2022

Ruling

Subject: CGT - deceased estates

Question

Will the Commissioner exercise the discretion to allow an extension of time for you to dispose of your ownership interest in the dwelling (the property) and disregard the capital gain or capital 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:

The year ended 30 June YYYY

The scheme commences on:

1 July YYYY

Relevant facts and circumstances

The deceased passed away on DD/MM/YYYY.

The deceased inherited their ownership interests in the property before 20 September 1985.

The property was situated on less than two hectares of land.

The deceased granted a life interest in their first ownership interest in the property to two of their siblings, Sibling A and Sibling B. When this life interest ended, the first ownership interest in the property passed Person C (you) and Person D equally as tenants in common under the deceased's will.

The deceased's second ownership interest in the property passed to Sibling A and Sibling B through survivorship.

Sibling A passed away some time after the deceased's death. When this occurred, Sibling A's ownership interests in the property passed to Sibling B.

Sibling B then passed away.

At the time the property was sold, the property was owned by the executor of Sibling B's estate, you and Person D.

You could not dispose of your interest in the property prior to Sibling B's passing, as Sibling B had a majority ownership interest in the property and a life tenancy under the deceased's will.

The property sold a few months after the death of Sibling B.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195