Private ruling: Deceased estate
Date of advice: 7 September 2022
Published: November 2022
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

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 the Commissioner's discretion can be found by searching 'QC 66057' on ato.gov.au.

Relevant facts and circumstances: The deceased owned at property that was acquired prior to 1985. The deceased passed away in September 20XX. The property was the main residence of the deceased just before they passed away and was not used to produce assessable income at the time of death. The property was situated on less than two hectares of land. Probate was granted in April 20XX. The deceased's Will allowed for their spouse the right to occupy the property until they wished to sell. The deceased's spouse resided at the property until their date of death. The deceased's spouse passed away in June 20XX. The property was vacant between the date of the deceased's spouse's death until the time that it was sold. It took a significant time for the property to be in a position to sell as it was initially believed that the property was in the deceased's spouse's name. While the Estate for the deceased's spouse was being processed, it was identified that they held the property as a personal representative. As the deceased's spouse was the executor of the deceased's Estate, the agency organising the spouse's Estate took on the administration of the deceased Estate. The property was listed for sale in May 20XX. A contract to sell the property was entered into in June 20XX, approximately one year after the date of the deceased's spouse's death, with settlement occurring in August 20XX.

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