| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1052156222810
Date of advice: 22 August 2023
Ruling
Subject: Commissioner's discretion - deceased estate
Question
Will the Commissioner exercise the discretion to allow an extension of time for you to dispose of your ownership interest in the dwelling 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 30 June 20XX
The scheme commenced on:
1 July 2020
Relevant facts and circumstances
The deceased acquired the property prior to 20 September 1985.
The property was the main residence of the deceased just before they passed away and was not used to produce assessable income at that time.
The property was situated on less than two hectares of land.
On XX/XX/20XX, the deceased passed away leaving a will.
The will appointed the executor as the executor of the estate.
Shortly after the passing of the deceased, Person A lodged a caveat with respect to the grant of probate. This was the catalyst for protracted legal negotiations between the executor and Person A which culminated in the executor commencing legal proceedings. Person A defended the claim. The matter was resolved by way of a deed of settlement and release signed in XX/20XX.
On XX/XX/20XX, the grant of probate was issued.
Between XX and XX/20XX, the executor sought various appraisals of the property and researched real estate agents.
In XX/20XX, the executor engaged a real estate agent (the agent).
On XX/XX/20XX, the executor entered a contract for sale of the property conditional upon finance. The purchaser had difficulty obtaining finance which resulted in several extensions to the settlement date.
On XX/XX/20XX, the contact for sale of the property settled.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subsection 118-195(1)