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Edited version of private advice
Authorisation Number: 1052244165906
Date of advice: 24 April 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 (ITAA 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 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 ending DD/MM/20YY
The scheme commenced on:
DD/MM/20YY
Relevant facts and circumstances
On DD/MM/20YY, XXX (the deceased) passed away leaving a will (the will).
The will appointed XXX as executor (the executor) and trustee.
As at date of death, the deceased owned a property at XXX (the property).
The property was the main residence of the deceased and had been acquired on DD/MM19YY.
The property is less than 2 hectares in size.
On DD/MM/20YY, probate was granted to the executor.
The title of the property was transferred into the name of sole beneficiary, who was also the executor.
At this point the intention was to sell the property, however this was delayed as the executor required significant hospital treatment over an extended period of time.
The property was in a state of disrepair due to years of neglect. Although no significant improvements were made, the family of the executor did make efforts to clean up the property to make it suitable for sale.
On DD/MM/20YY, a contract of sale was signed, and settlement occurred on DD/MM/20YY.
At all material times, the property was not used for producing assessable income.
The property is less than 2 hectares in size.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195