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Edited version of private advice
Authorisation Number: 1052325621323
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 (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 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 X/XX/20XX.
The deceased owned a dwelling that was acquired the property prior to 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 the time of death.
The property was situated on less than 2 hectares of land.
Probate was granted on XX/XX/20XX
On XX/XX/20XX, you were notified by a letter from the deceased estate's lawyer that you were a beneficiary of the deceased's will and that you would be receiving a bequest from the estate consisting of monetary funds and the property.
On XX/XX/20XX, the property title was transferred into your name.
On XX/XX/20XX, you had a medical procedure, and this delayed you from organising the sale of the property.
On XX/XX/20XX, the remaining funds of your inheritance were transferred to your bank account.
On XX/XX/20XX, you contacted a real estate agent to commence the process of selling the property.
Between XX/XX/20XX and XX/XX/20XX, some minor maintenance was undertaken on the property, including some painting, construction of a new fence, repairs to the front gate, replacement of a bathroom door, some gardening and replacement of blinds, glass windows and lights.
The property remained vacant after the deceased passed away until it was sold.
During XX/20XX and XX/20XX, open homes occurred.
An auction was scheduled for XX/XX/20XX; however, an early offer was made prior to that date.
A contract was entered to sell the property on XX/XX/20XX, with settlement occurring on XX/XX/20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)