Private ruling: CGT – deceased estate – 2yr discretion
Date of advice: 25 March 2019
Published: May 2019
Ruling period: Financial Year ending 30 June 201X
Date scheme commenced: 1 July 201X

Ruling: Q1: Will the Commissioner allow an extension of time to XX/XX/XXX 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 passed away in 201X. One of the assets of the deceased estate was the deceased’s main residence, a post capital gains tax asset. The deceased did not treat any other dwelling as their main residence during their ownership period. The property has never been used to produce assessable income at any time during the deceased’s ownership period or since death. The deceased left a valid Will and probate was granted to the executors in 201X. The executor’s personal circumstances prevented them from dealing with the estate for a period of time. The property title was transferred into the executor’s names shortly after probate was granted. Once repairs were made to the dwelling a real estate agent was engaged. The property was listed for sale and a contract was entered into shortly thereafter. Settlement has taken place.

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