Private ruling: Capital gains tax - deceased estate - two-year extension of time
Date of advice: 19 May 2021
Published: July 2021
Ruling period: For the income year beginning 1 July XXXX | For the income year beginning 1 July XXXX | For the income year beginning 1 July XXXX | For the income year beginning 1 July XXXX | For the income year beginning 1 July XXXX | For the income year beginning 1 July XXXX
Date scheme commenced: DDMMYYYY

Ruling: Q1: Will the Commissioner allow an extension of time until DDMMYYYY for you to dispose of your ownership interest in the dwelling of the deceased estate and disregard a 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: Your parent died in XXXX. At the time of their death, they were the sole property owner and living in the property. The property was acquired by the deceased in XXXX for $X. The dwelling was the main residence of the deceased at the date of death and not being used to produce assessable income. The deceased had a will dated DDMMYYYY. Grant of Probate was issued by the Supreme Court on DDMMYYYY. Administration of the estate is underway and relevant costs will be charged to the Estate. The land is less than 2 hectares. Under the terms of the will, Person A has been given the right to reside in the property for a period of X years from the date of death until DDMMYYYY. The right to reside is subject to certain conditions being met including that Person A pays all rates, taxes, insurances and other outgoings with respect to the property. The X year right to reside has now expired and the property was placed on the market to be sold. The sale contract went unconditional and settlement has occurred on DDMMYYYY.

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