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Edited version of private advice
Authorisation Number: 1052393497111
Date of advice: 22 May 2025
Ruling
Subject:Commissioner's discretion - extension of time
Question
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:
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 private ruling applies for the following period
Year ending 30 June 20YY
The scheme commenced on:
1 July 20YY
Relevant facts
Person 'A' acquired an interest in a dwelling prior to 20 September 1985 (the property).
Person 'A' (the deceased) passed away and left a Will.
The deceased's child (Person B) and a relative were named in the Will as the executors and trustees of the estate.
The deceased's Will granted a life interest in the property to their child, Person B as the sole trustee, to hold the property on trust according to the terms set out in the deceased's Will.
Around XX XXX 19XX, Person B as the executor, was registered as the proprietor of the property.
Person B resided in the dwelling until their death on XX XXX 20XX.
On XX XXX 20XX, XXX Trustee commenced administering Person B's estate.
On XX XXX 20XX, probate of Person B's Will was granted to XXX Trustee.
In XXX 20XX, while undertaking a title search, XXX Trustee noted that Person B was registered on the title of the deceased's property.
According to the deceased's Will upon the death of the life interest, the property passed to named and other unnamed beneficiaries.
In XXX 20XX, a decision was made to approve XXX Trustee to arrange a deed appointing them as the trustee of the trust for the purposes of dealing with the deceased's property.
On XX XXX 20XX, action was taken for the deed of appointment.
On XX XXX 20XX, a Deed Poll - Appointment of New Trustee appointed XXX Trustee, as Person B's legal representative being the last surviving trustee of the property trust prior to his death, hereby appoints itself as the new trustee of the property trust in place of Person B as from the date of this Deed Poll.
On XX XXX 20XX, an application was submitted to have the title registered in the name of XXX Trustee as trustee for the deceased's estate.
In XXX 20XX, XXX Trustee was registered on the property title, and commenced the sale process.
A contract for the sale was exchanged on XX XXX 20XX.
Settlement took place on XX XXX 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195