Edited version of private advice

Authorisation Number: 1052131762073

Date of advice: 20 July 2023

Ruling

Subject: CGT - 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 private ruling applies for the following period

Year ending 30 June 20YY

The scheme commenced on:

1 July 20YY

Relevant facts

The deceased passed away on DD MM 20YY.

The deceased acquired a dwelling (the dwelling) post 20 September 1985.

The dwelling was the main residence of the deceased until they passed away.

The dwelling has never been used to produce assessable income.

The land area is less than 2 hectares in size.

You were appointed executor of the estate under the terms of the deceased's will.

You were also the beneficiary of the estate.

You reside in a capital city and attending to the preparation of the dwelling for sale was adversely affected by Covid-19 Lockdowns.

The State Government lockdowns restricted your travel movements and trade people to undertake the rectifications and repairs to the dwelling and caused delays in the sale.

The house had been poorly maintained.

You had to replace a hot water service and the two internal toilets. This was a slow process as you had to plan the plumbing visits around your trips up there in your holidays.

You had to replace all the sheer curtains in the property, as they were all torn and old. You bought the fabric and made all the curtains personally.

You had to clear all of your parent's accumulated household items, clothing, photographs, crystal collection, paintings, personal items from a lifetime of memories, which took an exceptional amount of time.

You had to clear two garages - a large shed full of tools, machinery, stored hardware, trailers, old tyres and plastics which took 3-4 rubbish skip removals, as well as many trips to the tip.

You also had to dispose of old cars that were difficult to sell. You ended up selling them for scrap metal.

You engaged the services of a real estate agent and placed the dwelling on the market in MM 20YY.

The dwelling was sold and settlement took place a short time later.