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Edited version of private advice
Authorisation Number: 1052066459567
Date of advice: 6 December 2022
Ruling
Subject: CGT - deceased estates
Question
Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the property 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 'QC 66057' on ato.gov.au.
This ruling applies for the following period:
30 June 20XX
The scheme commences on:
XX September 20XX
Relevant facts and circumstances
The deceased passed away on XX XXX 20XX.
The deceased acquired the property after 20 September 1985.
The property was the main residence of the deceased throughout their ownership period.
The property has never been used to produce assessable income.
The property is less than 2 hectares in size.
As per the deceased's last will and testament, you were the Executor of the Estate.
Probate was granted on XX December 20XX.
Following the passing of the deceased, your relative, who was the carer of the deceased, refused to leave the property. Your relative did not pay any rent, council rates or water bills while they were residing in the property, and you were unable to prepare and list the property for sale.
You were constantly asking your relative to pack and find themselves a property to where they could move into. Your relative refused to leave and then ceased communications. They felt that they had every right to stay in the property for as long as they wanted to.
You were considering steps required to take to evict your relative but in November 20XX, they passed away.
You have received a valuation for the property as at the date of death of the deceased.
You were then able to access the property after your relative passed away. You prepared and listed it for sale.
You entered into a contract to sell the property on XX September 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195