Edited version of private advice

Authorisation Number: 1052312008525

Date of advice: 04 October 2024

Ruling

Subject: Capital gains tax

Question 1

Will the Commissioner exercise the discretion under section 118-195 of the 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 disregard the capital gain or 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:

XX XXXX 20XX

The scheme commenced on:

XX XXXX 20XX

Relevant facts and circumstances

Prior to XX September 19XX, the deceased acquired the residential property (the property).

The property size is under X hectares - XXXsqm.

In 19XX, your parents divorced, and the house was transferred into the deceased's name.

On XX XXXX 19XX the deceased's last will was written.

In the 19XX's, the deceased's relative A, moved into the house with your parent and your family to help take care of the family.

In 19XX, Child A moved out of the family home, and now resides in State A.

In 19XX, Child B moved out of the family home and now resides in Country A.

On XX XXXX 20XX, the deceased passed away.

The Public Trustee in and for State A is appointed as the Executor for the deceased's will.

You both (Child A and Child B) are the beneficiaries of the will receiving equal shares in the real and personal estate that was left by your parent including the property.

Relative A was appointed as your guardian in the will.

Relative A remained in the house, after the deceased's passing, as this was the deceased's wish, and the family agreed to this.

From 20XX-20XX, relative A continued to reside in the property, and they contributed to the maintenance of the property as they had done for many years since moving in.

On XX XXXX 20XX, you both had the property title registered in your names as joint tenants in common through the Public Trustee.

You both commenced paying the rates, water rates and land tax invoices, and never charged relative A rent while they were living in the house, before or after or the deceased's passing.

You both supported relative A with what they needed regarding the house, logistically or health and well-being.

Between 20XX and 20XX several clean-ups were done to the property, this included:

•                     going through you parent's possessions

•                     cleaning up the garden and property

•                     hiring skip bins to dispose of rubbish.

You both completed any maintenance that you could yourselves or hired contractors to address issues you could not fix yourselves.

Relative A's health deteriorated, and they were hospitalised several times. Child A provided support and you kept in contact via facetime, calls, texts, and email.

On XX XXXX 20XX, relative A passed away.

Another clean-up was completed after their passing including:

•                     gardening

•                     cleaning the interior of the property

•                     cleaning the exterior and windows

•                     skip bin hire to remove rubbish.

You replaced light globes, fixed the gas hob on the stove and the reticulation leak plus electrical work and certification was required prior to the sale of the property.

You engaged a real estate agent during this time, they helped with any additional items that needed attention around the house for the presentation and sale of the property.

On XX XXXX 20XX you both signed the selling agreement with the Real Estate Agent.

On XX XXXX 20XX, you both signed a contract for the sale of the property with the purchasers.

On XX XXXX 20XX, the sale of the property settled.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195