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Edited version of private advice
Authorisation Number: 1052357217139
Date of advice: 4 February 2025
Ruling
Subject: Commissioner's discretion - deceased estate
Question
Will the Commissioner exercise the discretion under section 118-195 of 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 DD MM YYYY.
The dwelling is located at XXXX (the property).
The deceased and their spouse acquired the property prior to 20 September 1985.
The property was not used to produce assessable income and was situated on less than two hectares of land.
The deceased's spouse passed away in 20XX.
At the date of their death, the deceased held a 50% pre-CGT and a 50% post-CGT interest in the property.
The property was the main residence of the deceased before they passed away and remained vacant until sold.
Probate of the deceased's Will was granted on DD MM YYYY.
Due to COVID lockdowns the property could not be prepared for sale.
An agent was appointed on DD MM YYYY with the intention of holding a MM auction.
On DD MM YYYY the property was damaged in a severe weather event and needed repair before sale.
After delays with insurance, the executors directly engaged tradespeople in MM YYYY to rectify the damage.
Repairs were completed and the property was determined safe from DD MM YYYY.
The property was placed on the market on DD MM YYYY.
A contract of sale was signed on DD MM YYYY with a four month settlement period.
The sale of the property settled on DD MM YYYY.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195