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Edited version of private advice
Authorisation Number: 1052201982807
Date of advice: 12 December 2023
Ruling
Subject: Commissioner's discretion - deceased estate
Question
Will the Commissioner exercise his discretion under section 118-195 of the Income Tax Assessment Act 1997 and allow an extension of time to the two-year period for the disposal of the Property by the Executors of the deceased estate and disregard any capital gain or loss they make on 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 private ruling applies for the following period:
Year ending X June 20XX
The scheme commenced on:
X July 20XX
Relevant facts and circumstances
The Property is located on less than 2 hectares.
The Property was the main residence of the deceased until their death.
Prior to their death, one of their children (person A) was residing in the Property with them.
Person A was involved in a serious car accident at a young age which left them with injuries that resulted in the need for continuous care. This care was provided for by the deceased.
In July 20XX, the deceased organised a family meeting with their children to discuss what was to occur if they passed away before person A does.
It was verbally agreed that if this were to occur, person A would remain residing in the Property until suitable accommodation was found for them.
The deceased passed away in 20XX.
Due to the remoteness of the town, the Executors found it difficult to find accommodation for person A that was suitable to their disability requirements.
It was necessary for person A to remain in the town as their medical professionals were located there.
Covid-19 lockdowns further impacted the ability to sell the Property.
In July 20XX, a real estate was instructed to sell the Property and it subsequently sold in 20XX.
Relevant legislative provisions
Income Tax Assessment Act section 118-195