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Edited version of private advice
Authorisation Number: 1052409740238
Date of advice: 18 June 2025
Ruling
Subject: Capital gains tax
Question 1
Will the Commissioner exercise the discretion under section 118-195 of the Income Tax Assessment Act 1997 to allow an extension of time to dispose of your ownership interest in the dwelling and disregard the capital gain or capital loss 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'.
Ttheir ruling applies for the following period:
30 June 20XX
The scheme commenced on:
3 August 20XX
Relevant facts and circumstances
The deceased passed away on X X 20XX.
The property is less than 2 hectares.
The deceased acquired a X% ownership interest in the property on XX X 200X.
The deceased acquired the remaining ownership interest in the property on XX X 20XX.
The property was the main residence of the deceased at the date of death.
The deceased treated the property as their main residence.
The property was never used for income producing purposes.
The property was vacant from the date of death until it was sold.
The property formed part of the residuary of the estate.
The household chattels were bequeathed to the deceased's sister.
The will appointed Z as executor and trustee.
Z renounced probate.
Under the will B was appointed as executor and trustee of the estate.
Application for Grant of Probate was filed on XX X 20XX.
Probate was granted on XX X 20XX.
The deceased children are the residuary beneficiaries of the estate.
Two of the beneficiaries engaged legal representation.
The legal action seeking a revocation of the Grant of Probate was instituted.
The two beneficiaries sought a Grant of Letters of Administration.
The alternative to Letters of Administration sought by the two beneficiaries was that the executor sell the property and pay any capital gains personally.
Legal proceedings regarding the matter are still ongoing.
The title of the property was transferred to the executor, B, on XX X 20XX.
The executor was caring for their parent.
The executor was working on fly in fly out basis spending 2 weeks away and 1 week at home until X 20XX.
The executor needed to dispose significant quantities of hazardous chemicals in compliance with Environmental Protection Act which took more than 12 months.
No refurbishments of the property were carried out.
The property was listed for sale by auction.
The auction took place.
A contract of sale was signed.
Settlement occurred.
The property was sold by the executor of the deceased estate.
Relevant legislative provisions
Income Tax Assessment Act 1997 (ITAA 1997) section 118-195