Private ruling: Capital gains tax and deceased estate
Date of advice: 24 June 2020
Published: August 2020
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

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? | A2: Yes.


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)


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: You inherited an interest in an overseas property. | You inherited the property from your relative who passed away in 20XX. | The land which the property stands is owned by a religious institution ('A'). | The property was your relatives main residence their entire ownership period. | After your relative passed away the property was left vacant. | Probate was granted in 20XX. | The ownership transfer of the property was granted by 'A' 20XX however was not completed until 20XX. | In a letter from 'A', it is advised "Note that the new owners may not enter into any transaction with regard to these referenced shares or flat, without prior 'A'." | The property was originally constructed in 19XX using a portion of vacant land from an adjoining property owned by your relatives family. | As the required conveyance process was not completed within x months of the completed construction of the property, a complex legal proceeding begun. | A law change approved by the relative government allowed approval to sell the property in 20XX. | It was a requirement by the landowner that the purchaser of the property is a particular religion and has been for at least x years in accordance with 'A's provisions of the rules, regulations and by-laws. | 'A' granted the sale of the property with no objection in 20XX. | You and the other beneficiaries reduced the sale price, however due to the legal difficulties this did not result in a sale as some of the potential purchasers were unwilling to proceed with the purchase. | A purchaser was eventually located who met the conditions imposed upon you and the sale proceeded. | You have made a capital gain notwithstanding the difficulties in locating a potential purchaser. | Settlement took place in 20XX.