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Edited version of private advice
Authorisation Number: 1052309774432
Date of advice: 25 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 (ITAA 1997) to allow an extension of time for you to dispose of your ownership interest in the dwelling and disregards 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 passed away on XX 20XX.
The deceased acquired 100% interest 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's Will, dated XX 20XX
Probate was granted on XX 20XX.
The property was transferred to the beneficiaries on XX 20XX.
Supporting information dated XX 20XX, showed the deceased had requested the sale of the property be delay as long as spouse of the deceased was alive and the deceased's daughter were living in the family home.
The deceased's spouse passed away on 12 October 2021.
The deceased's daughter was moving out on 10 January 2024.
The property was sold on 1 March 2024, with settlement on 21 April 2024.
Relevant legislative provisions
Income Tax Assessment Act subsection 118-195 (1)