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Edited version of private advice
Authorisation Number: 1052391538737
Date of advice: 6 May 2025
Ruling
Subject: Commissioner's discretion - 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.
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 DD/MM/20YY
The scheme commenced on:
DD/MM/20YY
Relevant facts and circumstances
On DD/MM/20YY, the deceased passed away, leaving a will.
The will appointed Person A and Person B as executors and trustees.
At date of death, the deceased owned a property at XXX which was their main residence.
Person A and Person C were living with the deceased at the property at time of death.
A condition of the will was that Person A and Person C could continue to reside in the property until Person C attained the age of XX years.
Person A and Person B were also beneficiaries, and in MM/20YY the property title was transferred into their names as joint tenants.
On DD/MM/20YY, Person C turned the age of XX years.
In MM/20YY, the executors started to clean and tidy up the property to be able to get it into a suitable condition to be able to place on the market.
The property had become run-down over the years and was difficult to sell.
In MM/20YY, there was a prospective buyer but the sale fell through.
On DD/MM/20YY, a contract of sale was signed.
On DD/MM/20YY, settlement occurred.
At all material times, the Property was not used for producing assessable income.
The Property is less than 2 hectares in size.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195