Private ruling: Commissioner's discretion - deceased estates
Date of advice: 4 November 2022
Published: 16 January 2023
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 12 July 20XX

Ruling: Q1: Will the Commissioner allow an extension of time to 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 66057' on ato.gov.au

Relevant facts and circumstances: The deceased owned a dwelling which was their main residence until their death. The dwelling was not used to produce assessable income. The dwelling was less than two hectares. There was an informal dispute on the administration of the estate. Once the dispute was resolved, the Corona virus pandemic had begun, causing a period of intermittent lockdowns starting in March 2020 and ending in October 2021. Due to lockdowns restrictions, the executor was not able to travel over 5 km from their home, preventing them from visiting the property and preparing it for sale. When the restrictions lifted, the property was listed for sale and sold shortly afterwards. Settlement occurred more than two years after the deceased's death.

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