Private ruling: Commissioner's discretion - deceased estate
Date of advice: 27 July 2022
Published: November 2022
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion to allow an extension of time for you to dispose of your ownership interest in the dwelling and disregard the capital gain or loss you made 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 66057' on ato.gov.au.

Relevant facts and circumstances: At some time after 1985, the deceased acquired the property and lived in it as their main residence up to the time of their death. It was never used for the purpose of producing assessable income. The property size is less than 2 hectares. Later, the deceased passed away. Their will provided that the property was to pass to their 2 children as beneficiaries of the estate. During the 2 year period, beneficiary personal circumstances impacted on their ability to attend to the administration of the estate. COVID-19 restrictions began and both beneficiaries were in high risk categories and limited their exposure. Subsequent to the easing of restrictions, a contract for sale of the property was entered into a couple of weeks after the expiry of the 2 year period and settlement took place a short time later.

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