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Edited version of private advice
Authorisation Number: 1052250632289
Date of advice: 14 May 2024
Ruling
Subject: Commissioner's discretion - deceased estates
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:
1 July 20xx
Relevant facts and circumstances
The deceased purchased the property from the joint tenant 20xx.
The deceased lived in the property as their main residence until the deceased passed away.
As per the deceased will, the spouse was provided a life interest to occupy the property and another party received full ownership.
The spouse resided in the property until relocating to a nursing home until passing away.
Personal belongings remained at the property until the property settlement process made it practicable to remove.
Services such as gas and power still connected and held by the family until exchange date 20xx.
Settlement occurred on XX X 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195(1)