Edited version of private advice

Authorisation Number: 1052119554233

Date of advice: 19 May 2023

Ruling

Subject: Commissioner's discretion - deceased estate

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 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:

Year ended 30 June 202XX

The scheme commenced on:

1 July 202XX

Relevant facts and circumstances

The deceased passed away on XX/XX/20XX leaving a will (the Will).

As at the date of death, the Deceased owned a property at XXX (the Property) which was their main residence.

The deceased appointed XXX as Executors of the Will (the Executors).

On XX/XX/20XX, the Executors received the sealed Grant of Probate.

Under the terms of the will, Person A was granted a right to reside in the property.

Person A was living in the property at the time the deceased passed away and continued living there until XX/XX/20XX.

On XX/XX/20XX, Person A removed all of their remaining belongings from the property.

On XX/XX/20XX, the Executors engaged a real estate agent to sell the Property. The real estate agent advised the Executor to address some minor issues relating to the Property prior to putting it on the market.

On XX/XX/20XX, the Executor entered a contract for sale of the Property with settlement occurring on XX/XX/20XX.

At all material times, the Property was not used for producing assessable income.

The property is less than 2 hectares in size.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195