Edited version of private advice

Authorisation Number: 1052325265483

Date of advice: 30 October 2024

Ruling

Subject: Commissioner's discretion - deceased estate

Question

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

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 ending 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

The deceased passed away on DD MM 20YY.

The property is located at XXXX (the property).

The deceased acquired the property before 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 provided the right to reside to family members for a specified period of time from the date they passed away.

The property was sold on DD MM 20YY (before the time limit lapsed), with settlement occurring on DD MM 20YY.

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

Relevant legislative provision

Income Tax Assessment Act 1997 section 118-195