Edited version of private advice

Authorisation Number: 1052170164446

Date of advice: 19 September 2023

Ruling

Subject: CGT - deceased estate

Question

Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the dwelling and disregard the capital gain you make on the disposal?

Answer

Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time to dispose of the dwelling.

Further information about this discretion can be found by searching 'QC 52250' on ato.gov.au.

This ruling applies for the following period:

Year ending 30 June 20XX.

The scheme commences on:

11 June 20XX.

Relevant facts and circumstances

Deceased passed away in June 20XX.

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 is situated on more than 2 hectares of land.

Probate was granted in December 20XX.

The delay in settlement of the contract of sale was caused by circumstances beyond your control, as follows:

• restrictions on travel to the property, imposed by a government authority in response to the COVID-19 pandemic
• complexities of other surviving relatives of the deceased

-       the deceased's child was evicted from the property by police in February 20XX.

The property was listed for sale as soon as practically possible.

The property will be sold at the earliest opportunity and proceeds distributed amongst the beneficiaries.

The sale of the property is being reasonably managed since having access to the property in February 20XX.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195