Edited version of private advice

Authorisation number: 1052270590668

Date of advice: 5 July 2024

Ruling

Subject: Commissioner's discretion - deceased estate

This private ruling applies to the beneficiaries of the trust, the trustee and any future trustee for as long as the private ruling remains current.

Question

Will the Commissioner exercise the discretion under section 118-195 of ITAA 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 private ruling applies for the following period:

Year ended 30 June 20XX

The scheme commenced on:

XX XX 20XX

Relevant facts and circumstances

XX XX (the deceased) passed away on XX XX 20XX

The dwelling is located at X XXXXXX (the property).

The deceased acquired the property prior to XX XX 19XX.

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

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.

Probate was granted on XX XX 20XX.

The property needed to be emptied of all its contents before it could be listed for sale.

Covid lock downs hindered the speed at which the house could be readied for sale.

Person A was suffering with a XXX illness during the time that the property was being cleared of the contents.

Person B had health issues and was admitted to an aged care home as they could no longer be cared for in their home.

The property was listed for sale after the legal proceedings were finalised. You entered into a contract to sell the property on XX XX 20XX with settlement occurring on XX XX 20XX

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195