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Edited version of private advice
Authorisation Number: 1052267123124
Date of advice: 27 June 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:
DD MM 20XX
Relevant facts and circumstances
The deceased passed away on DD MM 19YY.
The dwelling is located at XXXX (the property).
The deceased acquired their share in the property after 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 was situated on less than two hectares of land.
The deceased owned 50% of the property, with their spouse owning the other 50% share. The will of the deceased provided their spouse the right to occupy the property during her lifetime.
Their spouse resided in the property, until moving out on DD MM 20YY.
The property was sold on DD MM 20YY with settlement occurring on DD MM 20YY.
The property was not used to produce assessable income at any time between the date the deceased passed away and when it was sold.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195