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Edited version of private advice
Authorisation Number: 1052124223410
Date of advice: 31 May 2023
Ruling
Subject: Commissioner's discretion - deceased estate
Question
Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the dwelling located at XXX ('the Property') and disregard the capital gain or 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 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
The Deceased passed away on XX XXX 20XX.
The Deceased acquired the Property before 20 September 1985.
The Property was situated on less than 2 hectares of land.
Probate was granted on XX XXX 20XX.
At the time of the deceased's death, the Property was in an unsafe condition both internally and externally with a significant number of large items and hazardous materials that were required to be removed from the Property prior to sale.
There were complexities administering the estate, including the sale of assets (Property A and Property B).
Property A was sold first, in 20XX, as it was the only dwelling in a condition immediately ready for sale.
At the time of the deceased's death, Property B was structurally unsound and was subject to an ongoing legal dispute.
The estate was unable to obtain public liability insurance for Property B. Subsequently, Property B was prioritised for sale over the Property due to the significant risk issues associated with being unable to obtain public liability insurance.
Following the sale of Property B, extensive work was undertaken to prepare the Property for sale. External works undertaken included but were not limited to the disposal of hazardous materials, the removal of multiple car bodies, and machinery from the property. Internal works undertaken included essential electrical work to ensure the Property was safe to be listed for sale.
No work was undertaken beyond that necessary to prepare the Property for sale, being to clear the Deceased's items from the property and to clean up the yard.
The Property was sold at auction on XX XXX 20XX with settlement occurring on XX XXX 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195