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Edited version of private advice
Authorisation Number: 1052383991579
Date of advice: 14 April 2025
Ruling
Subject: CGT - deceased estate
Question 1
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 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 ending 30 June XXXX
The scheme commenced on:
1 July XXXX
Relevant facts and circumstances
XXXXX (The deceased) acquired XXXXXX (the Property) in XXXX.
The property was used as the deceased main residence.
On X XX 20XX the deceased was admitted into full time care.
From XXXX XXXXX the property has remained vacant.
XXXXXXX the deceased passed away.
The property is less than 2 hectares.
The Property has not been used to produce any income during the deceased ownership, nor since his death.
Since applying for the letters of Administration, XXXX has shifted from XXXXXX to XXXXXX.
XXXXX the Supreme Court had posted the documentation to the XXXX office, the XXXX received a copy on XXXX.
A number of factors contributed to a delay in the sale of the property including:
• There were a number of informal wills.
• Mediation was required between the beneficiaries and those seeking to make a claim in order to settle the action on the terms of the deed of settlement and release.
• Address issues causing delays in communication between the lawyer and the Court.
• The lawyer became tardy in attending to estate matters and generally became non communicative.
• The Public Trustee had an existing caveat on the property to protect the estate.
XX X 20XX given the settlement of the estate dispute; the Public Trustee removed the caveat on the property.
XX X 20XX the property was listed with an agent.
XX X 20XX a binding sale of contract was entered into.
XXXXX the settlement occurred for the property.
Relevant legislative provisions
Income Tax Assessment Act 1997section 118-195