Private ruling: Income tax - deceased estate - two year discretion
Date of advice: 20 February 2019
Published: May 2019
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Will the Commissioner allow an extension of time to XX June 20XX for The Public Trustee 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 acquired a dwelling (The dwelling). The deceased passed away in 20XX. The dwelling was the deceased’s main residence. The Public Trustee accepted administration of the estate dwelling in 20XX. The property size is less than two hectares. The dwelling was not used to produce assessable income. The dwelling could not be disposed within the two year time frame as the deceased’s will, dated 20XX gave Individuals A and B a right to reside in the dwelling. Individual A and B used the dwelling as their main residence from date of death of the deceased until they moved out. A contract for sale was signed in 20XX. Settlement occurred in 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 subsection 118-130(3) | Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 subsection 118-195(1)