Edited version of private advice

Authorisation Number: 1052176209975

Date of advice: 9 October 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.

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commenced on:

XX XX 20XX

Relevant facts and circumstances

The deceased passed away on XX XX 20XX.

The deceased acquired the property after 20 September 1985.

The property was the main residence of the deceased and was not used to produce assessable income before or after the date of death.

The property was situated on less than two hectares of land.

Several factors contributed to a delay in the sale of the property including:

•         Delay in receiving the death certificate.

•         Delay in obtaining the Probate.

•         Treatment of serious illness within your family.

•         Severe water damage of the property which required repairs.

•         The impact of COVID-19 delayed the time taken to complete the repairs.

•         You were living interstate and could not easily access the property due to COVID-19 travel restrictions.

You listed the property for sale on XX XX 20XX.

You entered into a contract to sell the property on XX XX 20XX with settlement occurring on XX XX 20XX (approximately 2 years and 4 months after the date of death).

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195