Private ruling: Capital gains tax - deceased estate - two year discretion
Date of advice: 22 October 2019
Published: January 2020
Ruling period: Year ended 30 June 2019
Date scheme commenced: 1 July 2018

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 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 dwelling was the deceased's main residence. The Will of the deceased was contested by one of the deceased's children A. Orders amending the deceased's Will were made in 20xx. These orders amended the interests of the deceased's children A, B, C and D in the dwelling. Transfer of interests in the dwelling to the deceased's children A, B, C and D occurred in 20xx. You sold your share of property to C with settlement occurring in 20xx. Settlement occurred only a short time after the two year period after the deceased passed away.

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