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Edited version of private advice
Authorisation Number: 1052058866372
Date of advice: 16 November 2022
Ruling
Subject: Commissioner's discretion - deceased estate
Question
Will the Commissioner exercise the discretion under section 118-195 of ITAA 1997 to allow an extension of time for you to dispose of your ownership interest in the dwelling acquired from a deceased estate 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 periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased jointly held the 'dwelling' prior to 20 September 1985 and acquired the remaining joint interest upon the death of her late husband on XX X 20XX.
The deceased's property is less than 2 hectares in size.
The deceased died on X X 20XX.
The dwelling was used by the deceased as their main residence until the date of their passing. The dwelling was never used for income producing purposes.
The 'executors' were appointed executors under the deceased will.
The executors were in dispute over the administration of the estate.
On XX October 20XX the first two executors applied to the State Supreme Court to have the third executor removed as an executor.
The State Supreme Court resolved the dispute by granting Letters of Administration to the 'Administrator' on XX X 20XX.
The estate contains X properties with an estimated value of over $X million as well as other significant assets which all needed to be administered.
The dwelling sold on X X 20XX and settled on XX X 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195