Private ruling: Capital gains tax - deceased estate two year discretion
Date of advice: 13 June 2019
Published: August 2019
Ruling period: Year ending 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 property was acquired and built in the 1970's. The property was the deceased's main residence and was not used for income producing purposes. The deceased's child and grandchild were living in the property at the time of death and arrangements had to be made for their alternative accommodation. The property required repairs and safety upgrades to allow for a legal sale. The funds were not immediately available to make the repairs. The sale of the property settled more than two years after the date of death, once the required repairs and probate was granted.

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