Private ruling: Deceased estate two year discretion
Date of advice: 20 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 facts and circumstances: The deceased acquired a dwelling (The dwelling) The deceased passed away in 201X (The deceased) The dwelling was the deceased’s main residence. The title was transferred to the Executor in 201X. The property size is XXXXm2 less than two hectares. The dwelling was not used to produce assessable income. The Executor developed a medical condition which restricted their ability to carry out these tasks as quickly as you would have anticipated. The dwelling was placed on the market for sale. A contract for sale was entered into in 201Y. Settlement occurred in 201Y (two years after the deceased passed away).

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)