Edited version of private advice

Authorisation Number: 1052172625642

Date of advice: 27 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 DD MM 20YY

Year ending DD MM 20YY

The scheme commenced on:

DD MM 20YY

Relevant facts and circumstances

The Deceased passed away on DD MM 20YY leaving a will.

As at date of death the Deceased owned a dwelling at XXX, which was their main residence.

The Will appointed Person A as the Executor.

At the time of the Deceased's passing, the Executor was full time carer for both the Deceased and their own sibling (Person B), who was unable to care for themselves. They had all lived in the property together since it was purchased in 20YY.

On DD MM 20YY, probate was granted to the Executor.

The Executor and Person B continued to reside in the property. Over the next few years doctors supported the need that Person B remain in a comfortable, stable environment that they was familiar with.

The executor had several of their own health issues from 20YY onwards which impacted their ability to attend to the estate/sale of the property in a timelier manner.

On DD MM 20YY, a contract of sale was signed, with settlement occurring on DD MM 20YY.

At all material times, the Property was not used for producing assessable income.

The Property is less than 2 hectares in size.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195