Edited version of private advice

Authorisation Number: 1052203674368

Date of advice: 14 December 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 ending 30 June 20XX

The scheme commenced on:

1 July 20XX

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 September 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 was situated on less than two hectares of land.

Some time after the deceased passed away the property was affected by floods. A claim with an insurance provider was lodged.

Initial payment of claim from the insurance provider for contents was paid on DD MM 20YY.

As the property is part of a Body Corporate, the external building repair works were completed as part of the Body Corporate insurance.

The building repair works were completed from on DD MM YYYY.

The property was placed on the market within a few weeks of all repairs being finalised.

The property was contracted for sale on or about DD MM 20YY, with settlement occurring on DD MM 20YY.

The property remained vacant from the date the deceased passed away until the time it was sold.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195