Private ruling: Capital gains tax - deceased estate - 2 year discretion
Date of advice: 5 February 2020
Published: March 2020
Ruling period: Year ended 30 June 2020.
Date scheme commenced: 1 July 2019.

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 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)


Relevant facts: The deceased acquired a dwelling (the dwelling). | The deceased passed away in 20xx. | The dwelling was the deceased's main residence. | The deceased returned to another country in later years to reside closer to family. | The dwelling remained vacant and was not used to produce assessable income. | The deceased prepared a Will in 20xx whilst residing outside Australia. | The process of proving and validating a Will in the overseas country is an involved process and the trustee experienced delays that included: | · A potential beneficiary indicated that they would make a claim on the estate. | · The overseas lawyer administering the estate required significant time to complete the requirements of proving the overseas Will in Australia. | · An Australian lawyer was engaged to assist in the process, however this lawyer became ill and retired without completing the administration of the estate. | · A specialist lawyer was then engaged in 20xx to provide advice on what was required to occur in Australia. | · Language barriers were experienced including requirements to have documents translated and certified. | Probate was granted in 20xx. | The dwelling was prepared for sale. | A contract was entered into in 20xx. | Settlement occurred in 20xx.