Private ruling: Capital gains tax - deceased estate - 2 year discretion
Date of advice: 25 July 2019
Published: September 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 facts: The deceased acquired a dwelling (the dwelling). | The deceased passed away in 20xx (the deceased). | The dwelling was the deceased's main residence. | The deceased left a number of wills prepared at different times and with different executors named. | A dispute arose in relation to the administration of the estate and the validity of the wills. Mediation was required and this caused delays in obtaining a grant of probate. | The dispute was resolved and an administrator was appointed in 20xx. | Further delays were experienced in selling the dwelling as the tenant of an adjoining property also owned by the deceased claimed to have a first right of refusal to purchase the dwelling. Delays were experienced in finalising this claim. | A caveat was lodged in 20xx on the title to the dwelling by one of the named executors. This was eventually removed in 20xx. | The dwelling was listed with a real estate in 20xx. | A contract for sale was entered into in 20xx. | Settlement will occur in 20xx. | 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