Private ruling: Capital Gains Tax – deceased estate – extension of time
Date of advice: 22 September 2017
Published: February 2018
Ruling period: Year ending 30 June 201Z
Date scheme commenced: 1 July 201Y

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 XX 201Z? | 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 XX 201Z. 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 201W. The deceased held a property (the property) which was the deceased main residence and was not used to produce assessable income. The grant of probate occurred in early 201X. The administration of the deceased’s Will was delayed due to one of the beneficiaries, the deceased family member. The deceased’s family member was suffering from a severe illness that made it difficult for the executor to perform their duties. The deceased’s family member had possession of the keys to the property and would not allow the executor to gain access to the property to carry out their duties in preparing the property for sale. The executor and the executor’s solicitor’s, on a number of occasions had contacted the deceased’s family member to try and gain access to the property and requested for their items to be removed. In late 201Y, the executor was finally able to arrange with the deceased’s family member for the items to be removed from the property and for the executor to have access to the property to prepare it for sale. The property was listed for sale with an agent in late 201Y. The house was sold at auction late 201Y and settlement occurred in early 201Z.

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