Private ruling: CGT – deceased estate – Commissioner’s discretion to extend the two year period
Date of advice: 23 April 2019
Published: June 2019
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time to the two year period? | 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 acquired a property a dwelling after 20 September 1985. The property is less than two hectares. The deceased passed away after 20 September 1985. The dwelling was the deceased’s main residence at the time of death. The dwelling was not used to produce assessable income. The executor suffered a from a health condition which required surgery and extensive recuperation. This prevented them from attending to the administration and disposal of the estate in a timely manner. The executor attended to the administration of the estate within four months after full recovery. The dwelling was advertised and sold within five months after probate was granted. The dwelling remained vacant until the executor sold it. Settlement occurred two years and five months after the deceased’s death.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 subsection 118-130(3) | Income Tax Assessment Act 1997 section 118-195