| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1052185022426
Date of advice: 30 October 2023
Ruling
Subject: Commissioner's discretion - deceased estate
Question
Will the Commissioner exercise his discretion under subsection 118-200(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the 2-year time limit to dispose of an inherited property?
Answer
Yes. Having considered the circumstances and relevant factors you have provided; the Commissioner will exercise his discretion and allow an extension of the 2-year limit for a partial exemption from CGT on the disposal of an inherited property. CGT is disregarded from the deceased's date of death until the disposal of your ownership interest in the property. Further information about this discretion can be found by searching 'QC 66055' on ato.gov.au.
This ruling applies for the following periods:
Year ended 30 June 2019
Year ended 30 June 2020
Year ended 30 June 2021
Year ended 30 June 2022
Year ended 30 June 2023
Year ending 30 June 2024
The scheme commenced on:
DD MM YYYY
Relevant facts and circumstances
The deceased passed away on DD MM 20YY. They passed away without a will and had no next of kin.
The dwelling is located at XXXX (the property). The deceased did not have an ownership interest in any other properties.
The deceased acquired the property after 20 September 1985.
The property was the main residence of the deceased just before they passed away.
The property was situated on less than two hectares of land.
The deceased used the property as their main residence from the start of the ownership period, until they moved into an aged care facility in MM 20YY.
The property was rented in or around MM 20YY. This was arranged by an individual with enduring power of attorney. This authority ceased on the date the deceased passed away. The property continued to be rented until MM 20YY upon termination of rental contract.
The deceased passed away with outstanding debts owed to multiple organisations.
State Trustees Limited (the administrator) were approached by solicitors representing an organisation in 20YY requesting they administer the estate.
The administrator accepted this request and obtained letters of administration on DD MM 20YY.
The property was placed on the market in MM 20YY. A contract to sell the property was entered into on DD MM 20YY with settlement occurring on DD MM 20YY.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 118-145(2)
Income Tax Assessment Act 1997 section 118-200
Income Tax Assessment Act 1997 subsection 118-200(3)