Private ruling: CGT - deceased estates
Date of advice: 27 May 2022
Published: August 2022
Ruling period: Year ending 30 June 2022
Date scheme commenced: Year ended 30 June 2019

Ruling: Q1: Will the Commissioner allow an extension of time to November 2021 for you to dispose of your ownership interest in the dwelling and disregard the capital gain or loss you make on the disposal? | A1: 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 66057' on ato.gov.au

Relevant facts and circumstances: The deceased owned a dwelling (the property) that was acquired after 20 September 1985. The property has passed equally to beneficiaries XX and XX before the sale of the property. The deceased treated the property as their main residence, and it was not being used to produce assessable income at the time of death. The property is less than 2 hectares in size. The deceased died in mid 2019. Probate was granted in late 2019 Documents needed to be sorted out in accordance with the Will, that stated papers were to be given to a reference library. The library would only accept the papers after being sorted, boxed and inventoried. From late 2019 to late 2021 the beneficiaries made a number of trips to the property to deal with the papers and other personal items. During 2020 and 2021 several of their intended flights were cancelled due to COVID-19. In late 2021 one of the beneficiaries formally engaged with a conveyancer to prepare documents required for the house to be put on the market. In late 2021 one of the beneficiaries made a subsequent trip to the property, from interstate, to remove and sort personal items of the deceased in accordance with the will and started preparing to put the house on the market. The beneficiary subsequentially made an offer to purchase the property from the other beneficiaries. This offer was accepted, and the property was settled within three months of the initial offer.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-195