Private ruling: CGT - deceased estates
Date of advice: 8 August 2023
Published: 25 September 2023
Ruling period: Year ended 30 June 20YY
Date scheme commenced: 1 July 20YY

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of the Income Tax Assessment Act 1997 to allow an extension of time for you to dispose of your 50% ownership interest in the dwelling that had been acquired by the deceased pre-CGT and disregard the capital gain or capital loss you made on the disposal? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner will allow an extension of time for your 50% share of the property that had been acquired by the deceased pre-CGT. Further information about the Commissioner's discretion can be found by searching ato.gov.au for 'QC 66057'

Relevant facts and circumstances: The deceased passed away on DD MM YY. The dwelling is located at XXXX (the property). The deceased and his ex-spouse jointly acquired the property before 20 September 1985. The deceased separated from his spouse and acquired the other 50% ownership interest on DD MM 20YY. The property was used for income producing purposes. The property was situated on less than two hectares of land. Initial probate was granted in 20YY. Following the initial grant of probate, the de facto spouse (a beneficiary) of the deceased contested the deceased's Will, bringing a claim for further provision from the deceased estate where they claimed that they had not been adequately provided for under the deceased's Will. The legal proceedings ended over X years after the deceased had passed. Final probate was granted in 20YY. The property was listed for sale soon after final probate was granted. You entered a contract to sell the property less than 6 months after final probate was granted with settlement occurring a couple of months later.

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