Private ruling: Capital gains tax - deceased estate - two-year discretion
Date of advice: 21 January 2021
Published: March 2021
Ruling period: Year ended 30 June 2018 | Year ended 30 June 2019 | Year ended 30 June 2020 | Year ended 30 June 2021
Date scheme commenced: 1 July 2017

Ruling: Q1: Will the Commissioner allow an extension of time to XX XXXX XXXX for you to dispose of your ownership interest in the dwelling and disregard the capital gain or loss 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 died in late 2017. The deceased owned a residential property. They purchased it in the early 2000's. The deceased owned this property as their main residence. The property was never rented out. The property is less than 2 hectares. The executor was the beneficiary of the property in the Will. Probate was granted some months after the date of death. One of the beneficiaries of the estate had their affairs managed by the Public Trustee as administrative guardian. The Public Trustee advised that the assets of the estate are not to be distributed as the Public Trustee was making a claim against the Estate. This was a Family Provision Application. The executor sought legal advice that stated they should not sell the property before the matter with the Public Trustee had been resolved. The matter was resolved on late in 2020 by an order of the Court. The property was sold shortly after the matter was resolved.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-195