Private ruling: Income tax - deceased estate - two year discretion
Date of advice: 16 April 2020
Published: June 2020
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner allow an extension of time for the executor to dispose of the Property and disregard the capital gain 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 this discretion can be found by searching 'QC 52250' on ato.gov.au

Relevant facts and circumstances: The deceased acquired a property before 19XX. The deceased passed away in 20XX. Property was the deceased's main residence at the time of death. A legal dispute with the will had to be settled. The Court order was granted some two years after the deceased's date of death. The size of Property is less than two hectares. The property was not used to produce assessable income. The property was placed on the market a short time after the Court decision was finalised and was sold shortly afterwards. A capital gain resulted from the sale of the property.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 subsection 118-130(3) | Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 subsection 118-195(1)