Private ruling: Commissioner's discretion - deceased estate
Date of advice: 7 June 2023
Published: 31 July 2023
Ruling period: Year ending XX/XX/20XX.
Date scheme commenced: Year ended XX/XX/20XX.

Ruling: Q1: Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the dwelling located at XXX ('the Property') and disregard the capital gain or loss you 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 the Commissioner's discretion can be found by searching ato.gov.au for 'QC 66057'.

Relevant facts and circumstances: The Deceased passed away on XX/XX/20XX. As at the date of death: 1. The Deceased owned the Property which had been acquired prior to 20 September 1985 and was situated on less than 2 hectares of land. 2. Person B was residing at the Property. 3. The Deceased was the administrator and beneficiary of Person A's Estate which remained unadministered. 4. The Deceased had a Will listing beneficiaries (the Beneficiaries). On XX/XX/20XX legal proceedings were commenced by one of the Beneficiaries. The application was defended. The proceedings were settled by mediation where it was agreed that the Administrator would be appointed to administer the Estate and the Property would be appropriated to Person B. On XX/XX/20XX, the Administrator was appointed by the Supreme Court. In order to determine the asset base of the Estate, the Administrator first needed to determine the value of Person A's Estate. On XX/XX/20XX, the Administrator applied to become the administrator of Person A's Estate. On XX/XX/20XX, Letters of administration were issued to the Administrator. There were complexities in administering Person A's estate. In XX/20XX, the final distribution from Person A's estate was made to the Deceased Estate. On XX/XX/20XX, the Administrator made an application to the Supreme Court for directions to distribute the Deceased's estate. On XX/XX/20XX, orders were made that Person B vacate the Property by XX/XX/20XX. Person A breached this order and vacated the Property on XX/XX/20XX. After a major clean-up of the Property, the Administrator engaged a real estate agent to market the Property. The Property was sold on XX/XX/20XX with settlement occurring on XX/XX/20XX.

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