Private ruling: Commissioner's discretion - deceased estate
Date of advice: 13 March 2023
Published: 1 May 2023
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion to allow an extension for you to dispose of your ownership interest in the dwelling and disregard the capital gain or capital loss you made on the disposal? | A1: Yes.

Relevant facts and circumstances: The deceased passed away on XX/XX/20XX. The deceased owned a percentage share of a property (the property) as a Tenant in Common with two others. The property was acquired on XX/XX. The property had not been used for income producing purposes during the deceased's ownership. The property was occupied by all three tenants in common who held a x% share each, and they all considered the property to be their main residence. The property was located on less than two hectares of land. The property has not been used for income producing purposes since the deceased died. The title deed was changed to the executor's name as personal representative to the estate to enable the sale of the property. As this was a co-owned property and the estate only held x% of the property, the estate experienced difficulty in placing the property on the market. The remaining tenants in common would not sell and the executor tried many times to sell the remaining x%. On XX/XX/20XX, a contract was signed for the sale of the property. Settlement of the property occurred on XX/XX/20XX. The property was listed for sale as soon as was practicable due to circumstances outside of the control of the executor

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 118-195(1)