Edited version of private advice

Authorisation Number: 1052072463795

Date of advice: 21 December 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 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:

Year ended 30 June 20xx.

The scheme commences on:

xx October 20xx

Relevant facts and circumstances

The deceased passed away on xx November 20xx.

The deceased acquired the property before 20 September 1985.

Letters of administration were granted on xx September 20xx.

At the time of the deceased's passing, one of the beneficiaries of the estate, Beneficiary A, was living in the property.

Beneficiary A suffers from mental health issues with associated disabilities that made it difficult for him to vacate the property.

The executor made multiple attempts to have Beneficiary A vacate the property.

Following mediation, an agreement was reached to have Beneficiary A vacate the property by xx October 20xx.

Beneficiary A did not vacate the property in accordance with the agreement reached at mediation.

Following further negotiations between solicitors for the parties, it was agreed Beneficiary A would vacate the property no earlier than xx December 20xx.

The property was listed for sale shortly after the agreement was reached for Beneficiary A to vacate the property. You entered into a contract to sell the property on xx October 20xx with settlement occurring on xx April 20xx.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195