Private ruling: Capital gains tax - deceased estate
Date of advice: 2 July 2020
Published: August 2020
Ruling period: Year ended 30 June 20XX.
Date scheme commenced: 1 July 20XX.

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.


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 and their child (A) acquired a dwelling (the dwelling). | The dwelling was owned in unequal amounts. | The deceased passed away in 20xx. (the deceased) | The dwelling had been the deceased's main residence prior to passing away. | The executors of the estate are 'A' and 'B'. | Person 'B' suffered a serious medical issue which required extensive hospitalisation and lengthy periods of recovery. | The medical complications had the effect that person 'B' was unable to assist with the sale of the dwelling. | Person 'A' was residing overseas and this made it difficult to organise the dwelling for sale. | Persona 'A' returned to assist with preparing the dwelling for sale, however was not able to adequately complete the process as quickly as anticipated. | The impacts of COVID-19 also impacted on the marketing of the dwelling. | The dwelling was sold and a small capital gain has occurred. | The dwelling was sold a short period outside the 2 years from when the deceased passed away. | Settlement took place in 20XX.