Private ruling: Capital gains tax - deceased estate
Date of advice: 12 August 2020
Published: September 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 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 purchased property pre-CGT and lived in the property as his/her main residence before moving to a nursing home. The deceased had a number of children. The deceased left a will which provided a life interest in the property to one of the children during their lifetime, due to mental health concerns, with the property to be sold and the proceeds divided equally among the family members when that child passed away. In 20XX the surviving members of the family executed a Deed of Family Agreement providing: · The life interest holder was not a mentally retarded person as alleged in the Will of the Deceased and has the capacity to make decisions regarding the sale of the property · The property is to be sold with the net proceeds of sale to be distributed among the beneficiaries. The property was placed on the market and a contract of sale was entered in 20XX. An extended settlement was agreed to and settlement occurred 20XX.

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