Edited version of private advice

Authorisation Number: 1052253829413

Date of advice: 21 May 2024

Ruling

Subject: Commissioner's discretion - deceased estate

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 acquired from a deceased estate 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 and 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:

XX XX 2020

Relevant facts and circumstances

The deceased XX XX passed away on the X XX 20XX.

In 19XX, the deceased and their spouse XX XX purchased a property located at XX XX, (the property).

Both the deceased and their spouse owned the property with 50/50 ownership interests as tenants in common.

The property is less than 2 hectares.

The property was the main residence of the deceased just before the deceased passing.

The property was not used for the purpose of producing assessable income at the time of the deceased passing.

The deceased's child was appointed as Executrix.

Probate of the estate was granted X XX 20XX.

The deceased's Will dated X XX 20XX, provided their spouse XX XX with a life interest in the property in relation to deceased's 50% share.

The deceased's spouse lived in the property until they passed away on the XX XX XX.

The house was put up for sale once XX probate was granted.

The property was sold (contracts exchanged) to an unrelated party following public auction on X XX 20XX.

The property settled on the XX XX 20XX within the two years of the deceased's spouse passing.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195