Private ruling: CGT - deceased estate
Date of advice: 17 August 2023
Published: 3 October 2023
Ruling period: Income year ended 30 June 20XX | Income year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of the Income Tax Assessment Act 1997 to allow an extension of time for you to dispose of your ownership interest in the property and disregard the capital gain or capital 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. The deceased acquired the property after 20 September 1985. The property was the main residence of the deceased just before they passed away and was not used to produce assessable income at that time. The property was situated on less than two hectares of land. Prior to the deceased's passing a will was drawn dated XX XX 20XX (the original will). After the funeral for the deceased another will was produced dated XX XX 20XX (the later will). The later will was contested by you, with court proceedings commencing on or about XX 20XX. A counterclaim was filed on XX XX 20XX, this led to protracted court proceedings. The property was unoccupied during the early years following the deceased's passing. Due to vandalism and break-ins, you allowed a family member to reside in the property from XX 20XX to XX 20XX. You also provided short term accommodation to another person for a few months. The property then remained vacant until it was sold. These decisions allowed you to have caretakers on the property and address expenses such as rates, water and insurances pending the outcome of the Court proceedings in relation to the 2 wills. The Court gave Orders on XX XX 20XX that the original will was to be approved for Probate. Upon receipt of the Orders you caused the property to be placed on the market for sale on or about XX 20XX. A contract for sale was completed, dated XX XX 20XX subject to issue of the Probate. Grant of Probate was sealed on XX XX 20XX. Settlement of the property occurred XX XX 20XX.

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