Edited version of private advice

Authorisation Number: 1052232468309

Date of advice: 9 April 2024

Ruling

Subject: Commissioner's discretion - deceased estate

Question 1

Will the Commissioner exercise the discretion to allow an extension of time for you to dispose of your ownership interest in the property, and disregard the capital gain or capital loss you made on disposal, including adjacent land up to 2 hectares?

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:

XX XX 20XX

Relevant facts and circumstances

The deceased was a resident of Australia for taxation purposes.

On XX XX 20XX, the deceased acquired a property.

The property was acquired as inheritance from the deceased's parent.

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

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

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

On XX XX 20XX, the deceased passed away.

The property was left empty from the date the deceased passed away until the sale settled.

The deceased's will appointed XX as Executor and Trustee, and their children as beneficiaries of the Estate.

On XX XX 20XX, probate was granted to you as legal personal representative for the Estate.

The deceased's spouse was a hoarder and had a collection of very heavy and bulky items that were both difficult to move or to find someone to take them away.

The Real-estate agent advised that they wouldn't advertise the property until they could see that the items had been removed.

On XX XX 20XX, you listed the property on the market.

You considered 3 Real-estate agents.

You engaged a Real-estate agent, who advised you should be able to get $XX for the property.

You reduced the price of the property after several RBA interest rate rises, and you noted less people coming to inspect the property.

You arranged to reseal the driveway at the property to help with the sale.

You listed the property for sale for XX days.

In XX 20XX, you changed agents and listed the property for a reduced amount.

XX weeks later, you further reduced the price and received 2 offers.

You rejected one offer as it was subject to the sale of the buyer's property, which you noted was overpriced.

You accepted an offer of $XX, this was $XX less than you expected.

On XX XX 20XX, you signed a contract to sell the property. The buyer requested a XX-month settlement.

On XX XX 20XX, the sale of the property settled.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195