Edited version of private advice

Authorisation Number: 1052049406382

Date of advice: 25 November 2022

Ruling

Subject: CGT - deceased estate

Question

Will the Commissioner allow an extension of time 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 66057' 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 over a decade ago.

The property was purchased by the deceased before 1985.

The property was less than 2 hectares.

The property was the main residence of the deceased for the whole of their ownership period.

The property was never used to produce income.

Letters of administration were granted early this year.

The deceased's will gave a life interest to the deceased's partner.

The partner passed away several months prior to the letter of administration being granted.

There were some issues around the partners name as their legal name was different than the name used by the deceased.

A contract to sell the property was entered into a few months after the partner passed away.

The property settled a few weeks after the letters of administration were granted.

The property was sold as soon as possible after the partner passed away.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195