Edited version of private advice

Authorisation Number: 1052132305923

Date of advice: 26 June 2023

Ruling

Subject: Commissioner's discretion - deceased estate

Question

Will the Commissioner exercise the discretion under section 118-195 of the Income Tax Assessment Act 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 XX/XX20XX

The scheme commenced on:

XX/XX/20XX

Relevant facts and circumstances

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

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

The Deceased appointed XXX as the Executor of their Will (the Executor).

On XX/XX/20XX a dispute of the Will and family provision claim was lodged by several parties with the Supreme Court of New South Wales.

Some years later the claim was finalised in the Supreme Court of New South Wales, with the option granted for one party to purchase the Property subject to certain conditions being met.

Probate was granted to the Executor on XX/XX20XX.

The option to purchase the Property was exercised and a contract on was signed on XX/XX/20XX, with settlement occurring on XX/XX20XX.

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