Private ruling: CGT – deceased estate – Commissioner’s discretion to extend the two year period
Date of advice: 6 July 2018
Published: September 2018
Ruling period: Year ending 30 June 20XX | 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? | 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.

Relevant facts and circumstances: KK and HH were the owners of the property. The property was purchased in XXXX. The beneficiary moved in with KK and HH as a carer. KK passed away on XX Xxxxxxxx 20XX. HH passed away on XX Xxxxxxxx 20XX. The deceased occupied the property as their main residence until they passed away on XX Xxxxxxxx 20XX. The deceased did not use the property to produce assessable income. The beneficiary continued to occupy the property until it was sold. The property was not used to produce assessable income whilst the beneficiary occupied it. Under the will, the deceased bequeathed the property in equal shares to the beneficiary. You were delayed in being able to list the property for sale as it took one year for probate and letters of administration to be obtained in the Supreme Court. Probate for HH was granted on XX Xxxxxxxx 20XX. Probate for KK was granted on XX Xxxxxxxx 20XX. The property was listed for sale in XX Xxxxxxxx 20XX as soon as practicable after probate was issued. The property did not sell and on XX Xxxxxxxx 20XX the agent relinquished their exclusive rights to the property. New real estate agents were engaged with an auction set for XX Xxxxxxxx 20XX. The property was sold on XX Xxxxxxxx 20XX for $XXXXXX. Terms of settlement was XXX days after property was sold. Settlement occurred on XX Xxxxxxxx 20XX.

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