Private ruling: Deceased estate 2 yr discretion
Date of advice: 4 December 2018
Published: March 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 Public Trustee 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 title of the dwelling was in two shares, deceased’s share was 70% and predeceased child of deceased’s share was 30%. The Public Trustee accepted administration of the 70% share of the estate dwelling in 20XX. The property size is less th an two hectares. The dwelling was not used to produce assessable income. A beneficiary of the deceased with 70% share of the dwelling is as well the executor of the 30% share of the dwelling. The dwelling could not be disposed of by the Public Trustee within the 2 year time frame as the Public Trustee was required to liaise with the Solicitor of the predeceased child’s 30% share of dwelling. The dwelling remained vacant until it was sold by the Public Trustee. The property was sold as soon as practicable. A contract for sale was signed in 2018. Settlement occurred in 2018.

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)