Private ruling: Deceased Estate
Date of advice: 9 August 2018
Published: September 2018
Ruling period: Year ending 30 June 2018
Date scheme commenced: 1 July 2017

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 to the relevant date in 2017? | 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 the relevant date in 2017. Further information on the relevant factors and inheriting a dwelling generally can be found on your website ato.gov.au by entering Quick Code QC52250 into the search bar on the top right of the page.

Relevant facts and circumstances: The deceased purchased a property situated in State A (the property). The property was purchased pre CGT. The property was used as the deceased main residence and no income was derived from it. The property title was transferred to the executors of the estate. The property’s land size is less than two hectares. There was a family dispute and couldn’t agree on what to do with the property after the death. No capital works were completed on the property before placing on the market. Probate was granted in September 20XX. The property has been sold with a settlement date August 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1 997 Subsection 118-195(1)