Edited version of private advice

Authorisation Number: 1052121376387

Date of advice: 22 May 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 (ITAA) to allow an extension of time for you to dispose of your ownership interest in the Property 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 ending XX June 20XX

The scheme commenced on:

XX July 20XX

Relevant facts and circumstances

The Deceased acquired the property after XX/19XX.

The Deceased passed away on XX/XX/20XX.

The Property was the main residence of the Deceased throughout their ownership period.

Probate was granted to the Executor on XX/XX/20XX.

A third party made a claim against the estate which complicated the administration.

The Executor was undergoing medical treatment while administering the Estate.

The Executor was then diagnosed with a medical condition on XX/XX/20XX and was also undergoing treatment for this condition while administering the Estate.

COVID-19 mandated restrictions negatively impacted the Executor's ability to advertise the Property and arrange inspections for potential buyers.

The Property was listed for sale on XX/XX/20XX.

The Executor entered a contract for sale of the Property on XX/XX/20XX.

Settlement occurred in January the following year, XX/XX/20XX.

The property had not been used to produce income and was situated on less than two hectares.

Relevant legislative provisions

Income Tax Assessment Act 1997 subsection 118-195(1)