Edited version of private advice

Authorisation Number: 1052246386212

Date of advice: 30 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 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 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

The deceased passed away on DD MM 20YY.

The deceased acquired a property before 20 September 1985.

The property was the main residence of the deceased just before they passed away and was not used to produce assessable income at that time.

The property is situated on less than two hectares of land.

The will of the deceased contained a provision that granted a life tenancy to another individual.

This individual continued to live in the property as their main residence until they passed away on DD MM 20YY.

You entered into a contract to sell the property on DD MM 20YY, with settlement occurring on DD MM 20YY.

The property was not used to produce assessable income at any time after the deceased passed away.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195