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Edited version of private advice
Authorisation Number: 1052303265489
Date of advice: 10 September 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 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 ended 30 June 20XX
The scheme commenced on:
XX 20XX
Relevant facts and circumstances
The deceased acquired 100% interest in the after 20 September 1985.
The deceased passed away on XX 20XX in a sudden event.
The property was situated on less than two hectares of land.
The property was the main residence of the deceased until the date of deceased's death and was not used to produce assessable income at any time.
The deceased's Will, dated XX 20XX, provided for Person A, and Person B to be the Executors (the executors) of the Trust Estate.
At the time of death, the deceased was taking care for 4 foster children.
The probate was granted on XX 20XX.
The deceased also owned a motor vehicle and investment properties which were mortgaged with the Commonwealth Bank. The executors' priority was to end the debt to the Bank as soon as possible.
From XX 20XX to XX 20XX, the executors sold the motor vehicle, the investment properties respectively.
The executors lived some distance from the residence of the deceased estate.
On XX and XX 20XX, there were weekend garage sale was held to clear up the property.
The executors contacted XXX Contract Cleaning Service to clean the inside of the residence, invoice dated XX 20XX.
In XX 20XX, the executors contacted Real Estate agencies to get an appraisal for the sale of the property.
The executor entered into a contract to sell the property on XX 20XX with the settlement occurred on XX 20XX.
Relevant legislative provisions
Income Tax Assessment Act subsection 118-195 (1)