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Edited version of private advice
Authorisation Number: 1052091531863
Date of advice: 24 February 2023
Ruling
Subject: Commissioner's discretion - deceased estate
Question
Will the Commissioner exercise his discretion under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the two-year period to dispose of the dwelling to 17 XXX 2022?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will extend the two-year period to dispose of the dwelling to 17 XXX 2022. Further information about this discretion can be found by searching 'QC 66057' on ato.gov.au.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
The deceased passed away in XXXX.
The property was purchased by the deceased in XXXX.
The property was the deceased's main residence for the whole of his ownership period.
The property was transferred in equal shares to the deceased's children when they passed away.
The property was vacant from the date of death until it was sold.
The deceased passed away in the property.
Due to the nature of the deceased's death, intense cleaning and maintenance was needed before the property was deemed safe to enter.
The deceased children paid for all expenses associated with the property until it was sold.
It took time for the property to sell due to the nature of the death of the deceased and the children suffering from anxiety and depression which prevented them from visiting the property and preparing it for sale.
Both children sought psychological help.
The property was on the market for a short period when it was sold.
The property settled approximately four years after the date of death.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 118-195