Private ruling: Income Tax - Deceased estate - 2 year discretion
Date of advice: 10 April 2019
Published: May 2019
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner allow an extension of time to XX October 20XX (i.e. to approximately 2 years and 3 months for the Executor 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 Executor experienced considerable distress, which arose from the deceased’s death and the death of another family member around that time. The Executor accepted administration of the estate dwelling approximately 20 months after the deceased passed away. The property size is less than two hectares. The dwelling was not used to produce assessable income. A contract for sale was signed approximately 2 years and 2 months after the deceased’s death. Settlement occurred one month later.

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)