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Edited version of private advice
Authorisation Number: 1052148503579
Date of advice: 28 July 2023
Ruling
Subject: Commissioner's discretion - deceased estate
Question
Will the Commissioner exercise the discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) to allow an extension of time to dispose of the main residence and up to 2 hectares at the Property and disregard the capital gain or loss made on the disposal?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time. The reasons for the delay in disposing of the property were outside of the trustee's control.
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/XX/20XX.
As at the date of death, the Deceased owned the Property.
The Property was the main residence of the Deceased just before they passed away.
Probate was granted on XX/XX/20XX.
The Property was situated on less than 2 hectares of land.
The Property was not used for income producing purposes.
The beneficiary was restricted by their personal illness, caring responsibilities and COVID-19 travel restrictions and lockdowns.
Preparing the sale of the Property involved repairs, some of which occurred due to flooding and storm damage which occurred in June 20XX and January 20XX.
The repairs required materials that were not easily purchased at the time, including fencing materials.
Extreme weather conditions including storms resulted in large trees falling down which blocked access to the Property, until councils could clear the roads around and leading to the Property.
Flooding contributed to blocking access to the Property with many roads around and leading to the property being washed out, and thereby rendering them inaccessible.
The Property sold on XX/XX/20XX with settlement occurring on XX/XX/20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)