Edited version of private advice

Authorisation Number: 1052303000720

Date of advice: 12 September 2024

Ruling

Subject: Commissioner's discretion - deceased estate

Question 1

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 1

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 passed away on DD MM 19YY.

The dwelling is located at XXXX (the property).

The deceased acquired the property before 20 September 19XX.

The property was not 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 Will of the deceased provided a family member (Person A) with life tenancy. Person A passed away on DD MM 20YY.

The deceased had family members who inherited the property as tenants in common from the estate.

Following the inheritance of the property, one of the family members who received a share of the inherited property chose to purchase the shares of the property inherited by the other family members.

The property was sold and settled on DD MM 20YY.

The property was not used to produce assessable income between the date the deceased passed away until the date the property was sold.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195