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Edited version of private advice
Authorisation Number: 1052227089369
Date of advice: 12 March 2024
Ruling
Subject: CGT - Deceased estates
Question
Will the Commissioner exercise the discretion under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) to allow an extension of time to dispose of the ownership interest in the property at location A (the Property) and disregard the capital gain 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 a number of years ago. A copy of the Death Certificate was provided.
The deceased lived at the Property as their main residence for the whole of their ownership period.
The Property was purchased prior to 20 September 1985. A copy of the Certificate of Title was provided.
The Property was less than 2 hectares in size.
The deceased's will appoints Child A and Grandchild B as executors and trustees. A copy of the will was provided.
Probate was granted to the executors in the year following the date of death. A copy of probate was provided.
A life interest in the Property was left to Child A under the will.
Under the deceased's will, the Property was left to the deceased's Child A and Child B.
The will also allowed for another property to be purchased for Child A if the Property was sold.
Child A cared for the deceased and was never married.
Child A moved out of the Property and went into high level nursing care.
Child A passed away in a recent year.
The Property remained vacant from when Child A moved out until it was sold.
The Property was placed on the market soon after the Child A vacated as they were not able to return to the Property.
The legal owner of the Property at the time of sale was Grandchild B as executor of the will of the deceased.
The Property settled a few months after Child A moved out of the Property.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195