Private ruling: CGT - deceased estate - 2yr extension
Date of advice: 11 October 2018
Published: December 2018
Ruling period: Year ending 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 to XX September 20XX? | A1: Yes Having considered the relevant facts, the Commissioner is able to apply his discretion under subsection 118-195(1) of the ITAA 1997 and allow an extension to the 2 year time limit. The exemption period will be extended to XX September 20XX. Further information about this discretion can be found by searching 'QC 52250' on ato.gov.au

Relevant facts and circumstances: The deceased passed away on XX January 20XX. The property has always been the deceased’s main residence and was vacant from the deceased’s death until it was sold. The property was not used to produce assessable income at any time and is under X hectares in size. The deceased left a valid Will appointing both the deceased’s children and the president of a fund as executors of the estate. On XX July 20XX, the deceased’s child filed a motion in the Supreme Court to contest the Will of the deceased. The basis for the claim was the deceased’s child was not adequately provided for in the Will. The litigation was resolved on XX March 20XX stating that sufficient assets and adequate provision was made for the deceased’s child as part of the deceased’s Will. The property was contracted for sale on XX July 20XX and settlement date was XX September 20XX.

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