Private ruling: Capital gains tax - deceased estate
Date of advice: 29 November 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 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 a dwelling (The dwelling). | The deceased passed away in 2015 (The deceased). | The dwelling was the deceased’s main residence. | The dwelling was not used for income producing purposes. | The deceased’s will also contained an informal document which detailed provisions in relation to the distribution of the deceased’s personal assets. | The deceased’s will provided that their entire estate was to be distributed to their children. | The executors applied for a grant of probate in 2016. | The relevant court requisitioned the application and required that the executors obtain the consent of all the beneficiaries in relation to the informal document. | A beneficiary, ‘A’, did not consent to the grant of probate after obtaining legal advice. | The executor’s instructed solicitors to attempt to resolve the dispute. | The dispute was unable to be resolved and ‘A’ filed an affidavit in 2016 in relation to the informal document. | The dispute was resolved in 2016 and probate was granted. | The title to the dwelling was transferred to the executors in 2017. | The dwelling required some repairs prior to sale. | The executor’s also experienced some unforeseen personal circumstances which delayed the sale of the dwelling. | The dwelling was placed on the market for sale in 2018. | The dwelling was sold by auction in 2018. | Settlement was delayed for a short period by the purchasers. | Settlement occurred in 2018.