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Edited version of private advice
Authorisation Number: 1052389170225
Date of advice: 16 May 2025
Ruling
Subject: CGT - deceased estate
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 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.
The ruling has considered various aspects such as the acquisition, ownership, and transfer of the property, along with the deceased's will, estate administration, probate delays, legal engagements, and the final sale. These factors have caused delays in disposing of the property, impacting the beneficiaries.
Having considered your circumstances and the relevant factors of 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:
DD MM 20XX
Relevant facts and circumstances
On DD MM 19XX, the deceased purchased a property pre-capital gains tax (pre-CGT).
The property was less than 2 hectares.
The property was not 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 uninhabitable, leaving it without tenants or any other residents.
On DD MM 20XX, the deceased passed away.
At the date of death, the deceased also owned several other properties.
The beneficiaries of the estate have provided supporting information that the administration of the estate was delayed due to circumstances outside their control between DD MM 20XX and DD MM 20XX.
The property was placed on the market for sale upon the title transfer.
On DD MM 20XX, a contract for the sale of the property was entered into.
On DD MM 20XX, settlement of the property occurred.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195
Income Tax Assessment Act 1997 section 149-10