Edited version of private advice

Authorisation Number: 1052071446303

Date of advice: 20 December 2022

Ruling

Subject: Commissioner's discretion - deceased estate

Question

Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the dwelling (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 ato.gov.au for 'QC 66057'.

This ruling applies for the following period:

The year ended 30 June YYYY

The scheme commences on:

1 July 20YY

Relevant facts and circumstances

The deceased passed away on DD/MM/YYYY.

The deceased acquired the property after 20 September 1985.

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

The property was situated on less than 2 hectares of land.

The beneficiaries regularly attended the property to sort through the deceased's belongings and prepare the property for sale in the months following the deceased's death. Delay in disposing of the property was caused by the impact of COVID-19 measures, which limited access to the property for a number of months, and the sensitivity of the personal circumstances of the surviving relatives of the deceased, including the subsequent deaths of several other family members within two years of the deceased's date of death, and recommendations by a medical professional that a beneficiary take a period of stress leave

The property was listed for sale approximately three months after the expiry of the 2 year period, and settlement occurred approximately six months after the expiry of the period.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195