Private ruling: Commissioner's discretion - deceased estate
Date of advice: 22 April 2022
Published: July 2022
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 2021

Ruling: Q1: Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the property 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 66057' on ato.gov.au.

Relevant facts and circumstances: Sometime after 19XX, the deceased purchased a property located in a retirement complex held on strata title. The property was the deceased's main residence until they passed away. No other person resided in the property and it has been vacant since their death. The property size is less than two hectares. In 20XX, the deceased passed away. The executors are the deceased's two children. Several months later, the deceased's solicitors obtained the original will. The delay was due to COVID lockdowns. A notice of intention to apply for probate was published with the Supreme Court. A summons for probate was filed with the Supreme Court. Probate was granted. COVID rules limited reasons for attending the property. The retirement complex imposed its own attendance requirement, including requesting that non-residents do not attend, except for essential reasons. For a period of time, executors were not permitted to attend the property for any reason. The executors engaged solicitors to prepare the property for sale and sale contracts. The executors appointed a real estate agent to market the property for sale. The property was placed on the market. The executors accepted an offer. The contract for sale was exchanged. The property settled within four months after the two-year period expired.

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