Private ruling: Deceased estate - extension of time - deceased's main residence
Date of advice: 26 August 2020
Published: October 2020
Ruling period: Year ended 30 June 2020
Date scheme commenced: 1 July 2019

Ruling: Q1: Will the Commissioner allow an extension of time to DD/MM/YYYY for you to dispose of your ownership interest in the dwelling and adjacent land and disregard the capital gain you made on the disposal? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner will allow an extension of time. Further information about the Commissioner's discretion can be found by searching 'QC 52250' on ato.gov.au

Relevant facts and circumstances: The deceased passed away. The deceased owned a dwelling which was used as their main residence throughout the ownership period. The deceased left a will, appointing an executor and probate was granted. No capital works were completed on the property prior to sale. There were delays in disposing the property due to extensions provided on a contract of sale, which was finally withdrawn by the executor due to the purchaser not complying with the terms. The property was placed back on the market and the property was sold and settled approximately a month after the expiration of the 2 year period allowed for disposal of a deceased's main residence.

Relevant legislative provisions: Income Tax Assessment Act 1 997 subsection 118-195(1)