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Edited version of private advice
Authorisation Number: 5010083206059
Date of advice: 4 May 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 settlement?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time. Further information about discretion can be found by searching 'QC 66057' on ato.gov.au
This ruling applies for the following period:
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
XX February 20XX
Relevant facts and circumstances
The deceased passed away XX XX XXXX.
The land is less than 2 hectares.
The property is not a pre-Capital Gains Tax (CGT) asset.
The property was not used to produce income.
In 2 years, there were 6 lockdowns in Melbourne which prevented you from attending the property to prepare it for sale.
Your spouse became sick in XX 20XX which made you the principal carer for your 2 children.
The property was listed for sale in late 20XX and auctioned in the same month.
Settlement was completed 90 days later on XX XX 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)