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Edited version of private advice
Authorisation Number: 1052252632505
Date of advice: 24 May 2024
Ruling
Subject: Commissioner's discretion - deceased estate
Question
Will the Commissioner allow an extension of time to settlement for you to dispose of your ownership interest in the dwelling and disregard the capital gain you make on the disposal?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time. Further information about this discretion can be found by searching 'QC 52250' on ato.gov.au.
This private ruling applies for the following period:
1 July 20XX to 30 June 20XX.
The scheme commenced on:
1 July 20XX.
Relevant facts and circumstances
The deceased passed away.
The deceased and their spouse purchased the property pre - CGT.
The property is less than 2 hectares in size.
The dwelling at the property was the main residence of the deceased until they passed.
The trustee obtained probate after the testator passed.
Details of the deceased's final will provided:
• The entity was appointed as trustee of the trust.
• The property was to be held under trust.
• Person A was provided the use and enjoyment of the property during their lifetime.
• After this period the property was to be sold and proceeds distributed evenly between the remaining family.
The dwelling was used as Person A's main residence.
The entity was appointed power of attorney for Person A as they were deemed to not have the capacity to manage their affairs.
Due to medical reasons Person A was required to leave the property and reside elsewhere whilst in recovery.
Person A made the decision not to return to the property as the property was not suitable for their ongoing living requirements.
A selling agent was appointed to manage the property sale and it was agreed to auction the property.
The property was put up for auction was passed in.
The property was continued to be listed for sale and was sold shortly after.
The contract was signed for the sale of the property for $XXXXX.
The property settlement was finalised.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195