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Edited version of private advice
Authorisation Number: 1052158252707
Date of advice: 24 August 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 periods:
Year ended 30 June 2023
Year ending 30 June 2024
The scheme commenced on:
1 July 2022
Relevant facts and circumstances
The deceased passed away in early 2020.
The deceased acquired the property together with their late spouse before 20 September 1985.
The deceased's spouse passed away after 20 September 1985 and the deceased acquired their deceased spouse's ownership of the property under survivorship.
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.
Probate was granted on DD MM 20YY.
You entered into a contract to sell the property on DD MM 20YY, with settlement occurring on DD MM 20YY.
The delay in selling the property occurred due to significant sensitive personal circumstances that were outside of your control. The property was sold shortly after those circumstances were resolved.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)