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Edited version of private advice
Authorisation Number: 1052168510523
Date of advice: 28 September 2023
Ruling
Subject: CGT - deceased estate
Question
Will the Commissioner exercise the discretion under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 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 private ruling applies for the following period
Year ending 30 June 20YY
The scheme commenced on:
1 July 20YY
Relevant facts
The deceased passed away on DD MM 20YY.
As at the date of death, the deceased owned the dwelling.
The dwelling was the main residence of the deceased and was never used to produce assessable income.
The land area is less than 2 hectares in size.
The executor applied for probate in MM 20YY. Due to delays in the probate process, the grant was not issued until DD MM 20YY.
In MM 20YY, the executor was diagnosed with cancer. The executor commenced treatment which included radiation therapy and surgery. During this period the executor was unable to attend to the sale of the dwelling due to these serious personal circumstances. The executor's treatment ceased in MM 20YY.
In MM 20YY, the executor commenced the process of clearing and cleaning the dwelling in preparation for sale.
The executor engaged the services of a real estate agent to list the dwelling for sale with settlement occurring on DD MM 20YY.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195