Private ruling: Income Tax – Capital Gains Tax – Deceased Estate
Date of advice: 31 August 2017
Published: December 2017
Ruling period: Year ending 30 June 2018 | Year ending 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? | 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. 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: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. The deceased passed away in late 20XX. They willed to each of their X children an equal share in the property. The property was the deceased’s main residence and they provided in their will for their spouse to reside in the property for their life. The deceased’s spouse moved into a retirement home in 20XX and the property was rented to provide income to support their living expenses. The property was rented for less than six years. The property was the deceased spouse’s main residence until they passed away in late 20XX. You were unable to sell the property until the deceased spouse’s death. Necessary repairs were undertaken on the property in early 20XX and the property was sold at auction with settlement date in mid 20XX

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