Private ruling: Capital gains tax - deceased estate - Commissioner's discretion
Date of advice: 29 November 2019
Published: February 2020
Ruling period: Year ending 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Will the Commissioner allow an extension of time to XXXX 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.

Relevant facts and circumstances: Your parent acquired a property located at XXXX. Your parent acquired this property with their spouse prior to 20 September 1985 and elected it as their principle place of residence until their death. Your parents later divorced. Your parent obtained full ownership of the property in 19XX. Your parent lived at the house until their death on XXXX. Your parent had a will. In this will they left their whole estate to you and your 2 siblings in equal shares. Probate was granted on XXXX. The property was vacant and did not produce any income from the date of death until the date of sale. Several issues contributed to you being unable to sell the property within 2 years of your parent's death. These issues included your chronic health conditions, the distance from you and your sibling's houses to your parent's house and the death of your other parent X months after your parent. In XXXX you and your sibling (sibling A) transferred all of your right, title and interest in the property at XXXX to your other sibling (sibling B). You and your sibling (sibling A) were paid $XXXX each by your sibling (sibling B) for your third share respectively of the property. Your sibling (sibling B) purchased the house on XXXX for XXXX. The dwelling was purchased at market value.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 104-10 | Income Tax Assessment Act 1997 Section 118-195 | Income Tax Assessment Act 1997 Subsection 118-195 (1)