| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your private ruling
Authorisation Number: 2930016206805
Date of advice: 21 June 2022
Ruling
Subject: Commissioner's discretion - deceased estate
Question
Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time to the two-year period until XX August 20XX?
Answer
Yes. The circumstances surrounding your child's passion and the subsequent investigations caused extreme distress and delays in preparing the property for sale.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commences on:
XX June 20XX
Relevant facts and circumstances
In Early 20XX, your child suffered a fatal workplace accident.
Your child owned a property.
The property was your child's main residence at the time.
In Mid-20XX probate was granted.
The property was subject to a mortgage which was discharged using proceeds from the workers compensation payout in Early 20XX.
Days later, the property was transferred to you and your partner as equal owners.
You and your partner live in a different state to the property.
Your child was in the process of renovating the property at the time that they passed away and the kitchen had been completely removed.
After consultation with real estate agents, it was determined that the kitchen renovation needed to be completed before placing the property on the market for sale.
During the renovations, there were significant delays due to COVID-19, your distance from the property and other reasons outside your control.
In Mid-20XX, the unit was listed for sale.
Two months later, the unit was sold at auction and settled.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subsection 118-195(1)