Private ruling: Capital gains tax
Date of advice: 14 June 2018
Published: August 2018
Ruling period: Financial 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) in relation to the dwelling on the property and allow an extension of time until 30 June 20XX? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion under subsection 118-195(1) of the ITAA 1997 and allow an extension of time until 30 June 20XX. Further information on the relevant factors and inheriting a dwelling generally can be found on our website ato.gov.au and entering Quick Code QC52250 into the search bar at the top right of the page.

Relevant facts and circumstances: The deceased passed away. The deceased owned a property which was their principal residence from the date of acquisition until their death. The property was sold two and a half years after the deceased’s death. Sale of the property was delayed due to the following circumstances: ● the deceased died intestate without leaving a Will, ● the deceased’s children had trouble gathering papers and compiling relevant information to apply for Letters of Administration, and ● repairs were carried out before it could be put on the market. Settlement occurred on XX/XX/XXXX.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 118-195