Private ruling: Deceased estate Commissioner’s Discretion
Date of advice: 8 January 2019
Published: April 2019
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner allow an extension of time for the Trustees of Estate A and Estate B to dispose of their interests in the dwelling and disregard the capital gain made on the disposal? | A1: Yes. Having considered the 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

Relevant facts and circumstances: Individual A and Individual B purchased a main residence; the property was acquired before 20 September 1985 and later registered as tenants in common in equal shares. Individual A passed away 20XX, probate was granted in 20XX. Individual A’s Will provided a right to occupy the residence for Individual B. Individual B passed away 20XX. Probate of Individual B’s Will was granted in 20XX. A caretaker tenant was arranged pending a court order determination for a period of one week in 20XX. A Testator’s Family Maintenance Case in the Supreme Court of the relevant state occurred in order to clarify who should be entitled to the income and capital of the Estates. This action was settled by the Supreme Court of the relevant state in 20XX. Settlement of the property took place 20XX.

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)