Edited version of private advice

Authorisation Number: 1052087742352

Date of advice: 20 February 2023

Ruling

Subject: Commissioner's discretion - deceased estates

Question

Will the Commissioner exercise the discretion under section 118-195 of the Income Tax Assessment Act 1997 to allow an extension of time for you to dispose of the ownership interest in the property you owned as trustee of the 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:

The income year ending 30 June 20YY

The scheme commenced on:

1 July 20YY

Relevant facts and circumstances

The deceased passed away on DD MM YYYY.

The deceased inherited the property before 20 September 1985.

The property was the deceased's main residence.

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

The sensitivity of circumstances of a surviving relative of the deceased, who was also a beneficiary of the deceased's will, delayed the disposal of the property.

The deceased acknowledged their relative's sensitive circumstances in their will.

The property was sold as soon as practically possible after the circumstances were resolved.

No renovations or improvements were undertaken on the property between the deceased's date of death and settlement.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195