Private ruling: Capital gains tax - deceased estate
Date of advice: 11 August 2020
Published: September 2020
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner allow an extension of time until XX 20XX for you to dispose of your ownership interest in the dwelling so you can disregard any capital gain you make on the disposal? | A1: Yes. After considering 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 passed away in 20XX. At the time of their death, they were living at a property (The Property). You and your sibling were executors for your parent's estate. A coronial inquest was held following the death of your parent and was completed approximately one year after their death. After the coronial inquest was completed, you applied for probate. Probate was granted in 20XX. The property was never used to derive assessable income. No capital improvements were undertaken on the property before it was sold. The Property was placed on the market shortly after probate was granted. Settlement of the sale of the Property occurred in 20XX. The Property was sold only a short time outside the two year period from when your parent died. A small or nil capital gain occurred on the sale of the property.

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