Edited version of private advice

Authorisation Number: 1052164776916

Date of advice: 5 September 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 on DD MM CCYY.

The dwelling is located at XXXX (the property).

The deceased acquired the property after 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.

Probate was granted on DD MM CCYY.

A family member verbally promised to purchase the property and moved into the property, for which no rent was paid. The family member obtained financing to purchase the property.

Subsequently, the family member decided they were not going to purchase the property due to a change in their personal circumstances. They then moved out of the property.

Shortly after a real estate agent was contacted to sell the property via auction.

You entered into a contract to sell the property on DD MM CCYY with settlement occurring on DD MM CCYY, a couple of months after the expiry of the 2-year period.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195