Private ruling: Deceased estate
Date of advice: 24 March 2021
Published: May 2021
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the dwelling and disregard the capital gain 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 52250' on ato.gov.au

Relevant facts and circumstances: The deceased acquired the property post CGT. The deceased passed away during the year ended 30 June 20XX. The property was the deceased's main residence at the time of their death. The deceased passed away intestate. Letters of administration were issued during the year ended 30 June 20XX. After the deceased's death the property was left vacant and not used to produce assessable income. Two months after the letters of administration were issued, a contract was entered into for the sale of the property with settlement set for X months later. The buyer requested X extensions to settlement. XX months after the initial settlement date, the buyer notified the seller that they were discontinuing their property development business. XX months later a Deed of Rescission was signed. On the same day a new contract of sale was entered into with a new purchaser. Settlement of the property occurred during the year ending 30 June 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 118-195(1).