Private ruling: Commissioner's discretion - deceased estate
Date of advice: 7 March 2022
Published: May 2022
Ruling period: Year ended 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 or loss 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 66057' on ato.gov.au.

Relevant facts and circumstances: The deceased passed away intestate on xx/xx/20xx. The deceased acquired the dwelling after 20 September 1985. The dwelling was the main residence of the deceased and was not used for income producing purposes. The land on which the dwelling is located is less than two hectares. The administration of the deceased's estate was passed to the relevant state trustee. Probate was granted on xx/xx/20xx to the state trustee. The state trustee took over 12 months to finalise the case and the title of the property was transferred to the deceased's two children, A and B on xx/xx/20xx. Both A and B resided in locations which required significant travelling distances to attend the dwelling. At the time the property was transferred to A and B, A had a medical condition which had associated medical complications that persisted for a period of time and was advised not to travel. The significant travel time and medical advice not to travel prevented A from being able to attend to the dwelling to remove the personal effects of the deceased and prepare the dwelling for sale. Initial contact with a real estate agent to advertise the property for sale commenced around xx/20xx. A lawyer was contacted to draft the contract for sale on xx/xx/20xx. Shortly after there was disagreement on the terms of the agency agreement and contract and they were terminated. A new real estate agent was officially engaged on xx/xx/20xx with the agency agreement signed on xx/xx/20xx. The dwelling was listed for sale online on xx/xx/20xx with a for sale sign being placed on the dwelling five days earlier. Two offers were received on xx/xx/20xx and the dwelling was sold on xx/xx/20xx. Settlement on the sale of the dwelling occurred on xx/xx/20xx.

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