Private ruling: Capital gains tax - deceased estate - 2 year discretion
Date of advice: 8 May 2019
Published: June 2019
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

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 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)


Relevant facts: The deceased acquired an interest in a dwelling. | The deceased passed away in 20XX. | The remaining interest in the dwelling was acquired by ('A') who also resided in the dwelling. | The dwelling was the deceased's main residence. | The deceased's Will provided a life interest in the dwelling to 'A'. | 'A' continued to reside at the dwelling. | Legal proceedings were commenced by 'A' approximately one year following the deceased's death. | The legal proceedings were resolved in the fourth year after the deceased's death. | 'A' was required to make payments to the deceased's children in relation to the transfer of the deceased's interest in the dwelling. | The executor was delayed in disposing of the deceased's interest in the dwelling until the legal proceedings were resolved. | The deceased's interest in the dwelling was transferred to the executor in the fifth year after the deceased's death | In that year, the deceased's interest in the dwelling was transferred to 'A'.