| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1052075406898
Date of advice: 11 January 2023
Ruling
Subject: Commissioner's discretion - deceased estates
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 private ruling applies for the following periods:
Year ended 30 June 20XX
The scheme commences on:
X XX 20XX
Relevant facts and circumstances
The deceased passed intestate on X XX 20XX.
Letters of Administration were obtained by the partner of the deceased X June 20XX.
The assets of the estate include a property.
The property is less than 2 Hectares.
The property was the Deceased's primary residence at the time of their passing.
The deceased acquired their ownership interest in the property on XX X 20XX.
The property was not used to produce income.
The property was then vacant for some time after the deceased passing. The child of the deceased then used the property for their principal place of residence up until the final settlement.
At the time of passing the property was encumbered with a loan to the bank. The bank commenced proceedings to recover the money due and threatened to sell the property as a mortgagee in possession sale. The bank issued a Notice of Demand on X June 20XX. The bank then commenced proceedings in the Court against the estate XX X 20XX.
The beneficiaries then lent the money to the estate to prevent the proposed action and obtain clear title on X XX 20XX.
The State XXX city had several Covid lockdowns impacting the executor ability to finalise the estate.
The sale process was commenced in spring of 20XX after the final lockdown.
The contract of sale was executed on the X XX 20XX, with final settlement occurring on the XX XX 20XX.
The initial settlement on X XX 20XX was delayed allowing the beneficiary to vacate the property
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195