Private ruling: Deceased Estate
Date of advice: 17 August 2018
Published: October 2018
Ruling period: Year ending 30 June 2019
Date scheme commenced: 1 July 2017

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 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 the discretion can be found on our website ato.gov.au and entering Quick Code QC52250 into the search bar at the top right of the page.

Relevant facts and circumstances: The deceased purchased the property pre CGT. The property is less than two hectares in size. The deceased used the property until their passing. During the course of the administration of the estate two family members resided at the property. No capital works were completed on the property before placing on the market. Probate of the Will was granted. The property was placed on the market. At the time of sale the property was encumbered. The property title was transferred to the sole executor. Negotiations with the third registered mortgagee became protracted due to the fact that the sale proceeds were insufficient to repay the liabilities secured by that mortgage. Consent to the registration of the transmission application was delayed. The buyer identified various defects in relation to the property which the executor was required to repair under the terms of the contract. The buyer and seller were in a position to complete settlement, however settlement was further delayed due to the caveator, not having completed the verification of identity of their client. The Contract of sale was signed. Settlement was completed.

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