| 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: 1052213295259
Date of advice: 1 February 2024
Ruling
Subject:CGT - 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 thecapital 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 202X
The scheme commenced on:
1 July 202X
Relevant facts and circumstances
The Deceased passed away on DD MM 19XX.
As at the date of death the Deceased owned the Property which they had acquired prior to DD MM YYYY and was less than 2 hectares in size.
The Deceased left a Will listed X beneficiaries as tenants in common in equal shares (the Beneficiaries). The Will appointed Executor A and Executor B as the executors (the Executors) of the Deceased's estate (the Deceased Estate).
The Will permitted Tenant A and Tenant B the right to live at the Property so long as they shall desire and upon the expiry of their residency, the Property was to be sold and the proceeds of such to be divided in equal shares between the Beneficiaries.
Probate was granted to the Executors following which, on or around DD MM 19XX, ownership of the Property was transferred to the Executors.
Executor A passed away on DD MM 20XX. On or around DD MM 20XX, ownership of the Property was transferred to Executor B as the last surviving executor of the Deceased Estate.
On DD MM 20XX, Executor B passed away.
On DD MM 20XX, Probate for Executor B' estate was granted to the Executors of Executor B's Estate, who assumed the role of the Executor's of the Deceased Estate by representation pursuant to state legislation.
On or around DD MM 20XX, Tenant A vacated the Property and moved into a nursing home. It was agreed by the Beneficiaries of the Deceased Estate that the Property would be sold and the proceeds distributed in accordance with the Will.
On DD MM 20XX, ownership of the Property was transferred to the Executors of Executor B's Estate.
Shortly after Tenant A vacated the property, they passed away. The Property had been Tenant A's main residence from the date the Deceased passed until the date that Tenant A passed away.
On or around DD MM 20XX, advice was received by the Executors of Executor B's Estate that the sale of the Property could now proceed. The Property was made ready for sale and a real estate agent was appointed.
The Property was sold on DD MM 20XX and settlement occurred on DD MM 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195