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Edited version of private advice
Authorisation Number: 1052243266060
Date of advice: 26 April 2024
Ruling
Subject: Commissioner discretion - Deceased estates
Question
Will the Commissioner exercise the discretion under section 118-195 of Income Tax Assessment Act 1997 to allow an extension of time for you to dispose of your ownership interest in the dwelling and disregard the capital gain or capital loss?
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 periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commenced on:
DDMMYYYY
Relevant facts and circumstances
X (the Deceased) passed away on DDMM20YY.
The dwelling was located at X (the Property).
The Deceased acquired ownership of the Property on DDMM20YY.
The Property is situated on less than 2 hectares of land.
Probate was granted on DDMM20YY.
The Property remained vacant from the date of the Deceased's death until it was sold.
The Property was never used to produce assessable income.
The X (Executor) engaged a real estate agent to sell the Property in MM20YY.
The Property was listed on the market in MM20YY.
There was an initial offer for purchase of the property.
The offer failed to proceed due to circumstances outside of the Executor's control as well as other complications in administering the Estate such as COVID-19 restrictions, the remote/regional location of the Property, and the difficulty in finding the beneficiaries to approve the sale of the Property.
A new real estate agent was appointed in DDMM20YY, the beneficiaries approved and the Property was sold as soon possible once they delays were resolved.
The contract for the sale of the Property was entered on DDMM20YY and was settled on DDMM20YY.
Relevant legislative provision
Income Tax Assessment Act 1997 section 118-195