Edited version of private advice

Authorisation Number: 1052223781977

Date of advice: 26 February 2024

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 dispose of your ownership interest in the dwelling and disregard the capital gain or loss made 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 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 19YY leaving a will.

The deceased acquired the property after 20 September 1985.

The dwelling on the property was the main residence of the deceased just before they passed away.

The property was not used to produce assessable income before or after the date of death.

The property was situated on less than two hectares of land.

In deceased's will, your parent had a life tenancy subject to payment of rates, taxes, and other outgoings.

Certificate of title shows that the life interest in the property was transferred to your parent, then ownership was transferred to yourself and a relative upon your parent's death.

Your parent lived in the property from date of the spouse's death until their own death.

You and your relative were beneficiaries in equal shares upon surviving your parents by 30 days.

The contract for the sale of the property was executed on DD MM 20YY.

Settlement of the property occurred on DD MM 20YY, approximately 5 months after your parent's death.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195