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Edited version of private advice
Authorisation Number: 1052229480424
Date of advice: 12 March 2024
Ruling
Subject: Deceased estates 2 year discretion.
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 for you to dispose of your ownership interest acquired 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 ended 30 June 20xx
The scheme commenced on:
01 July 20xx
Relevant facts and circumstances
The deceased purchased the property 20xx.
The deceased's friend was residing at the property when they passed away prior to the deceased passing away.
The deceased's friend's belongings remained at the vacant property whilst contention about probate application was addressed by their family.
On 20xx the property was found to be broken into and incurred damage to gates, shedding, ceilings, windows, and doors including blood stains throughout the property.
Building repairs were addressed by their insurance and completed on 20xx
The property settlement was on 20xx.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195(1)