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Edited version of private advice
Authorisation Number: 1052345066577
Date of advice: 18 December 2024
Ruling
Subject: Capital gains tax 2 year
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 to dispose of the ownership interest in the Property and disregard the capital gain 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:
Year ended XX June 20XX
The scheme commenced on:
XX July 20XX
Relevant facts and circumstances
The deceased passed away several years ago.
The property situated was purchased by the deceased and their late spouse and child prior to XX September 19XX.
The land was subdivided, and the main residence was built a number of years after purchase.
Initially the property was held by all parties as joint tenants.
The deceased's spouse passed away a few months prior to the deceased.
Prior to the deceased passing away the title was changed to tenants in common with both the deceased and their child holding a percentage share of the property.
The property was the deceased's main residence just before they passed away.
The property was less than X hectares in size.
The property was never used by the deceased to derive assessable income prior to their death or after their death.
Probate was granted to another child of the deceased.
The child on the title was also nominated as executor but never took up the roll.
The child offered the property for short term rentals for several years.
The child reached an in-principle agreement with the estate to purchase the property.
The child then frustrated the progress of the estate shortly after and ceased communication.
The executor sought assistance from lawyers to progress the estate and a court hearing was arranged which the child agreed for the property to be sold.
The child then unexpectantly died.
The child passed without a will.
The child's estranged spouse took over the administration of his estate.
Letters of administration were granted for the child's estate.
The court proceedings continued and a court order to sell the property was issued in the month after the child passed away.
The property was sold several months later.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195