Private ruling: Deceased estate - extension of time
Date of advice: 16 December 2020
Published: March 2021
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner allow an extension of time under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) for you to dispose of your ownership interest in the dwelling? | 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 passed away on XX XXX XXXX. Following the deceased's passing the application for probate was granted on XX XXX XXXX. The deceased owned a property as tenants in common with X. The property had been purchased by the deceased and their child. The property was purchased as, and for the entire ownership period remained, the main residence of the child. The property was purchased as Tenants in Common: • to provide a level of asset protection • servicing capacity from income to satisfy bank requirements • as a gift. It was the understanding of the executors for the estate that the property proceeds and ownership was always the child's. The property was sold and settlement occurred.

Relevant legislative provisions: In come Tax Assessment Act 1997 subsection 118-195(1)