Private ruling: CGT - deceased estate
Date of advice: 7 November 2018
Published: March 2019
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

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 or loss 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 and his/her spouse purchased the property before 20 September 1985. They moved into the property as their main residence. In 19XX the deceased and his/her spouse purchased another property. On or after 19XX the deceased and his/her spouse moved into the second property and continued to live in it until being moved into a nursing home. The property sat vacant after they moved out and was not used to produce assessable income. In 20XX the deceased passed away. In the years leading up to his/her passing he/she had progressive dementia but retained control of his/her financial affairs. Upon his/her passing the executor found that the deceased’s financial affairs had been neglected for years prior to his passing and needed to be properly attended to. The executor has had to deal with issues that have arisen due to missing documents. The executor, who was also a beneficiary of the estate primarily, dealt with all of the issues themselves. This included the cleaning of both houses to get them ready for sale. He/she had difficulty getting consensus from the other beneficiaries as one was overseas and difficult to contact and the other was not dealing well with the entire situation. Probate was granted in 20YY. After the property was cleaned it was listed for sale. It was sold and settled in 20ZZ.

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