Private ruling: Income tax - deceased estate - two year discretion
Date of advice: 14 February 2019
Published: May 2019
Ruling period: Year ended 30 June 2019
Date scheme commenced: 1 July 2018

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

Relevant facts and circumstances: The deceased acquired a dwelling (The dwelling). The deceased passed away in 20XX (The deceased). The dwelling was the deceased’s main residence. The executor accepted administration of the estate dwelling when probate was granted two and a half years after the deceased’s date of death. The property size is less than two hectares. The dwelling was not used to produce assessable income. The dwelling could not be disposed within the two year time frame due to factors outside of your control. A settlement deed was signed during the relevant income year. A contract for sale was signed during the relevant income year. Settlement occurred during the relevant income year.

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)