Private ruling: Capital gains tax - deceased estate
Date of advice: 22 July 2017
Published: November 2017
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? | 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 QC17195 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 March 20XX. The deceased owned a property. The property was purchased in the early 1970s. In November 20XX the deceased inherited the other 50% share to own the whole property. The property was the deceased’s main residence. Three individuals inherited the property from the deceased in joint tenancy. Individual A lived and cared with the deceased during their illness from late 20XX and remained living in the home after the deceased passed away. After the deceased passed away, Individual B experienced severe illness and undertook treatment. Individual B was unable to cope with arrangements involving the deceased until years (the end of 20XX). During this time Individual C suffered a medical condition into late 20XX and resides overseas. Individual A was dealing with the complexities of the deceased’s estates. This delayed the sale of the property. The property was never rented or used to produce assessable income. The property was sold settlement date December 20XX.

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