Edited version of private advice

Authorisation Number: 1052198098725

Date of advice: 16 January 2024

Ruling

Subject: Commissioner's discretion - deceased estate

Question

Will the Commissioner exercise the discretion under section 118-195 of ITAA 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 X June 20XX.

The scheme commenced on:

X July 20XX.

Relevant facts and circumstances

The Property is located at location A and is situated on less than 2 hectares.

The Property was the main residence of the deceased until their death in 20XX.

Probate was granted in February 20XX.

The deceased's children were named as beneficiaries in the deceased's Will.

Neither were given a right to occupy under the deceased's Will.

Shortly after the deceased's death, child A began residing in the Property after being evicted from their previous house.

The family agreed to allow child A to stay there temporarily as they would otherwise be homeless.

Child A suffered from mental health issues and the family were unable to remove them from the Property.

As a result of Child A's illness, they had been unable to work so had limited funds to afford alternative accommodation.

In June 20XX, the family obtained alternative accommodation for child A and they moved out.

Between X and X of 20XX, necessary repairs were conducted to the Property so that it was suitable to be advertised for sale.

A real estate agent was engaged in August 20XX, and the Property was sold on X October 20XX.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195