Private ruling: Deceased estate main residence
Date of advice: 6 June 2017
Published: October 2017
Ruling period: 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: 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 https://www.ato.gov.au and entering Quick Code QC17195 into the search bar at the top right of the page.

Relevant facts and circumstances: The deceased passed away. The deceased acquired the property pre CGT, it was always their main residence. The deceased died intestate, without any immediate family. A family member of the deceased engaged a solicitor to sort out the administration of the estate. Letters of administration were applied for nearly two years after the deceased’s death. Administration rights were granted more than two years after the deceased’s death. The property was transferred to the family member as trustee for the estate. The property was cleaned up and listed for sale two months later. The property settled outside the two year time limit.

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