Private ruling: CGT - deceased estate
Date of advice: 23 January 2025
Published: 17 March 2025
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under the Income Tax Assessment Act 1997 (ITAA 1997) section 118-195 to allow an extension of time for you to dispose of your ownership interest in the dwelling and disregard the capital gain or capital loss you made on the disposal? | A1: Yes.

Relevant facts and circumstances: Person A (the deceased) and his sibling Person B (sibling) purchased the property at Location A (the property) as joint proprietors. The deceased inherited the siblings ownership share in the property when they passed on XX November 20XX. The property was situated on less than two hectares of land and was the deceased's main residence until their passing and was not used to produce assessable income at that time. The deceased passed on XX January 20XX with no children and at the time of their passing and was divorced. On XX March 20XX a grant of administration had been made appointing Person C as administrator of the deceased's intestate estate. On XX June 20XX, Law Firm 1 first became aware of the passing of the deceased when an email was received from Law Firm 2 advising of the appointment of Person C. On XX June 20XX Law Firm 1 wrote to Law Firm 2 advising that they held an original Will for the deceased dated XX October 20XX. The Will named the senior partner of Law Firm 1 as executor of the estate. An application was made to the Supreme Court to revoke the grant of administration. On XX July 20XX the Supreme Court issued a Summons for Revocation and proceedings were listed for directions on XX August 20XX. Between XX August 20XX and XX February 20XX, the Supreme Court took the following actions in respect of the deceased estate: • Directed that the beneficiaries on intestacy be notified of the application to revoke the grant of administration that was made to Person C. • Made further orders to applicants motioned in listed hearings. • Considered the application made by Law Firm 1 • Revoked the previous grant of administration made to Person C. On XX February 20XX the Supreme Court made a grant of representation to the senior partner of Law Firm 1, Person D (executor). On XX February 20XX the property was transferred to the executor. On XX April 20XX a contract of sale was signed for the property. The purchaser had requested a 120 settlement period, the property sale settled on XX August 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-195.