Edited version of private advice

Authorisation Number: 1052058823193

Date of advice: 17 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.

The deceased's Will provided their child A (child A) a right to reside in the dwelling during their lifetime.

The will also provided that after either the passing or termination of the life interest of child A, the absolute use and enjoyment was bequeathed to the deceased's other children, child B and child C.

Child A continued to occupy the dwelling until XX XX 20XX when the life interest was terminated. This occurred after a period of time child A spent in hospital. It was determined that child A would no longer be able to look after themselves after discharge from hospital.

Child A is to be transitioned from hospital to an aged care facility once a place becomes available.

The dwelling was prepared for sale and placed on the market for sale.

Settlement for the sale occurred A short time later.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195

Income Tax Assessment Act 1997 subsection 118-120(3)