Edited version of private advice

Authorisation Number: 1052088900329

Date of advice: 21 February 2023

Ruling

Subject: Commissioner's discretion - deceased estate

Question

Will the Commissioner exercise the discretion under section 118-195 of Income Tax Assessment Act 1997 to allow an extension of time for you to dispose of your ownership interest in the dwelling and disregard the capital gain or capital loss you made on the disposal for up to two hectares of the property?

Answer

Yes.

Having considered your circumstances and the relevant factors the Commissioner will 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 for up to two hectares of the property. 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 XX XX 20XX

The scheme commenced on:

XX XX 20XX

Relevant facts and circumstances

The deceased passed away on XX XX 20XX.

The property was owned by the deceased and the property is more the two hectares in size.

The property was acquired by the deceased on XX XX 20XX and was the deceased's main residence until they passed away.

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

The property was sold on XX XX 20XX and settled on XX XX 20XX.

The property was not used to produce income.

Delay was occasioned as there was a right to reside in the property as per the will provided to deceased's partner and friend. The deceased's partner vacated the property in XX 20XX and the friend of the deceased vacated the property in XX 20XX.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195