Private ruling: CGT - deceased estate – two year extension
Date of advice: 15 November 2018
Published: February 2019
Ruling period: 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner allow an extension of time to 27 July 2018 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 a property on XX August 19XX. He resided at the property in question until his death on XX October 20XX. He appointed his child to be the Executrix of his Will and Trustee of his estate. His child continued to live in the property after his death until it was sold. The property was not used to produce assessable income at any time and is under 2 hectares in size. The deceased purchased the property direct from the Vendor with Vendor finance. When the loan was paid in full the title was not transferred to the deceased. The property was first listed for sale in September 20XX but due to issues with the title, it was withdrawn. A caveat was placed on the property on XX July 20XX. The Vendor had since died and the Executor of the deceased had to locate the beneficiaries of the Vendor’s estate and request transfer of title to be completed. The Vendor’s beneficiaries required proof of payment of the loan before this could be done. This caused considerable delay in the sale of the property as there was a lot of investigation by various solicitors to obtain proof of sale and then obtain the title of the property. Transfer of title of the property was finalised between December 20XX and January 20XX. The caveat was withdrawn on XX July 20XX. The property was once again listed for sale, date of sale of the property was signed XX May 20XX and settlement occurred on XX July 20XX.

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