Private ruling: Commissioner's discretion - deceased estate
Date of advice: 14 April 2022
Published: July 2022
Ruling period: Year ending 30 June 20xx
Date scheme commenced: 1 July 2021

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 ato.gov.au for 'QC 66057'.

Relevant facts and circumstances: The deceased passed away on xx/xx/xxxx. The property was the main residence of the deceased throughout their ownership period. The deceased moved into aged care in xx/xxxx. The property was rented out from xxxx. Probate was granted on xx/xx/xxxx. The executor made a choice to treat the property as the deceased's main residence for the period from xx/xx/xxxx to xx/xx/xxxx, being a period of less than 6 years. On xx/xx/xxxx, person A commenced proceedings for a greater share of the estate. On xx/xx/xxxx, the Supreme Court gave approval to settlement of the proceedings, approximately 9 months after the proceedings commenced. Subsequently, other factors also delayed the sale of the property. The property sold at auction on xx/xx/xxxx with settlement occurring on xx/xx/xxxx, approximately 6 months after the expiration of the two-year period.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 118-195(1) | Income Tax Assessment Act 1997 section 118-145