Private ruling: Deceased estate - extension to the two-year period
Date of advice: 17 March 2021
Published: May 2021
Ruling period: Year ended 30 June 2019 | Year ended 30 June 2020 | Year ending 30 June 2021
Date scheme commenced: 1 July 2018

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? | 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 died during the year ended 30 June 2019. The property was the deceased's main residence from purchase until the deceased moved to a care facility. The property was listed for sale after the deceased moved to the care facility prior to their death. A contract for sale was entered into prior to the deceased's death. The contract was terminated by the buyer on 11 months after the deceased's death due to their development not being approved. A new contract was entered into with a new buyer two weeks after the previous contract was terminated. The original development approval due date was six months after the new contract was entered. The buyer requested five extensions to the settlement date before finally settling two years and three months after the deceased died.

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