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Edited version of private advice
Authorisation Number: 1052053615662
Date of advice: 23 November 2022
Ruling
Subject: Commissioner's discretion - deceased estates
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 ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts
The deceased acquired an ownership interest in a dwelling.
The deceased passed away passed away on XX XX 20XX.
The dwelling was the main residence of the deceased throughout their ownership period.
The dwelling has never been used to produce assessable income.
The land area is less than 2 hectares in size.
Probate was granted on XX XX 20XX.
The Executor, experienced delays in selling the dwelling as beneficiary A (beneficiary A) and beneficiary B (beneficiary B) reside in another state. COVID-19 travel restrictions during the period xx xx 20xx - xx xx 20xx restricted the ability of beneficiary A and beneficiary B attending the dwelling to sort personal possessions and household contents of the deceased.
The Executor was unable to sufficiently prepare the dwelling for sale until beneficiary A and beneficiary B had attended the dwelling and provided instructions about what to do with the contents of the house.
Beneficiary B underwent a period of hospitalisation as a result of a medical procedure. This caused some delays in the sale of the dwelling whilst recovering.
The executor engaged a real estate agent in xx xx 20xx and a formal agreement was entered into on xx xx 20xx.
The real estate agent recommended painting the house and some garden maintenance.
The local lockdowns meant that getting some trades to prepare the dwelling for sale caused some delays.
The house was painted and land maintenance was undertaken by the Executors children during the period from xx 20xx to June 20xx.
The executor suffers from medical conditions which restricts their movements and ability to travel.
The dwelling was listed for sale by auction on xx xx 20xx, however there were no bidders.
The dwelling was subsequently sold on xx xx 20xx.
Settlement occurred on xx xx 20xx.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195