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Edited version of private advice
Authorisation Number: 1052177031082
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.
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 30 June 2023
The scheme commenced on:
1 July 2022
Relevant facts and circumstances
The deceased passed away on DD MM 20YY.
The dwelling is located at XXXX (the property).
The deceased acquired the property after 20 December 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 less than two hectares of land.
The will of the deceased contained a provision that granted a life tenancy to another individual.
This individual continued to live in the dwelling as their main residence until they passed away on DD MM 20YY.
You entered into a contract to sell the property on DD MM 20YY with settlement occurring on DD MM 20YY.
The property was not used to produce assessable income at any time after the deceased passed away.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195