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Edited version of private advice
Authorisation Number: 1052173150548
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 property 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 period:
Year ended DD June 20YY
The scheme commenced on:
DD July 20YY
Relevant facts and circumstances
The deceased passed away on DD MM 20YY.
As at the date of death, the deceased owned the property.
The property was the main residence of the deceased immediately before they passed away.
The property was not used to produce assessable income at the time of the deceased's death nor at any time during the ownership period.
The property was situated on less than two hectares of land.
The deceased's will named Person 1 and Person 2 as executors of the estate (the estate).
The terms of the deceased's will created an enforceable legal impediment to the sale of the property.
The impediment to sale had ended as of MM 20YY.
The property was set for auction on DD MM 20YY, with settlement occurring on DD MM 20YY.
The property was sold by the executors.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)