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Edited version of your written advice
Authorisation Number: 5010057081275
Date of advice: 14 February 2019
Ruling
Subject: Income tax - deceased estate - two year discretion
Question
Will the Commissioner allow an extension of time for the executor to dispose of your ownership interest in the dwelling and disregard the capital gain you make on the disposal?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time. Further information about this discretion can be found by searching 'QC 52250' on ato.gov.au
This ruling applies for the following period:
Year ended 30 June 2019
The scheme commences on:
1 July 2018
Relevant facts and circumstances
The deceased acquired a dwelling (The dwelling).
The deceased passed away in 20XX (The deceased).
The dwelling was the deceased’s main residence.
The executor accepted administration of the estate dwelling when probate was granted two and a half years after the deceased’s date of death.
The property size is less than two hectares.
The dwelling was not used to produce assessable income.
The dwelling could not be disposed within the two year time frame due to factors outside of your control.
A settlement deed was signed during the relevant income year.
A contract for sale was signed during the relevant income year.
Settlement occurred during the relevant income year.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 subsection 118-130(3)
Income Tax Assessment Act 1997 section 118-195
Income Tax Assessment Act 1997 subsection 118-195(1)