Private ruling: Capital Gains Tax – Deceased Estate
Date of advice: 11 October 2017
Published: March 2018
Ruling period: Year ended 30 June 2017
Date scheme commenced: 1 July 2016

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 late 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 XX late 20XX. Further information on the relevant factors, and inheriting a dwelling generally, can be found on our website ato.gov.au by entering Quick Code QC52250 into the search bar at the top right of the page.

Relevant facts and circumstances: The deceased died without a will in late 20XX. The deceased purchased a main residence, in early 20XX with settlement occurring in mid 20XX. There was a delay in obtaining letters of administration as the beneficiaries had to prove that the deceased related several children overseas. Letters of administration were granted in mid 20XX. The estate was then challenged by a related child of the deceased. The Relevant Court signed off on this case in mid 20XX. The property was rented by the executer for a period of time. The property was sold in late 20XX and settlement occurred in late 20XX.

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