Edited version of private advice

Authorisation Number: 1052080312372

Date of advice: 8 February 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 ruling applies for the following period:

Period end 30 June 20YY

The scheme commenced on:

XX September 20YY

Relevant facts and circumstances

The deceased passed away on XX January 20YY.

The dwelling is located at a Place (the property).

The deceased acquired the property before 20 September 1985.

The property was not used to produce assessable income at that time.

The property was situated on XX hectares.

Probate was granted on XX April 20YY.

The deceased's partner challenged the Will and made a Family Provision Claim that they were not adequately cared for by the terms of the Will. The originating application was filed on XX May 20XX and the District Court Order was obtained on XX September 20YY.

There were further delays in listing the property for sale due to allegations of possible firearms and explosives on the property and people living on the property. There were concerns for the safety of potential buyers viewing the property. This matter had to be investigated by the police.

The property was listed for sale on XX September 20YY.

A contract for the sale of the property was signed on XX September 20YY and settlement occurred on XX October 20YY.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195