Private ruling: Capital Gains tax – deceased estate (2 year discretion)
Date of advice: 20 September 2018
Published: October 2018
Ruling period: Year ending 30 June 2015
Date scheme commenced: 1 July 2014

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the 2 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 passed away in XXXX. The property was acquired by the deceased after 20 September 1985. The deceased held a 50% share in the property. The deceased used the property as their main residence for the entire ownership period. The property was never used for income producing purposes. Probate was granted. The other owner then passed away intestate in XXXX and Letters of Administration was not attained until XXXX. This caused further delays as the property was then required to be considered in two estates, which required you to communicate the arrangements for sale of the property with the beneficiaries in the other estate. You faced difficulties with the beneficiaries of the other estate and were dealing with a number of administrative issues in relation to the estates including legal matters. During this time of trying to reach an agreement regarding the sale of the property the other beneficiaries were uncooperative and avoided many interactions of communication. This made the sale of the property more challenging and complicated. After undertaking necessary repairs the property was ready for sale and you commenced the process to put the property on the market. The property sold in XXXX. The delay in selling the property was due to the complexity of dealing with the estate matters and other matters which were outside of your control.

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