Private ruling: CGT - deceased estate - Commissioner’s discretion to extend the two year period
Date of advice: 2 March 2019
Published: May 2019
Ruling period: Year ending 30 June 2019
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 will allow an extension of time. Further information about this discretion can be found by searching 'QC 52250' on ato.gov.au

Relevant facts and circumstances: The deceased acquired a dwelling. The deceased passed away several years later. The dwelling was the deceased’s main residence. The title of the property was transferred into the joint names of the deceased’s children. The dwelling required extensive maintenance, cleaning and clearing of overgrown trees and shrubbery to make it presentable to be placed on the market. In 20XX, a real estate agent listed the dwelling for sale at a listing price of $XXXX. The local real estate market was slow, and a couple of months later the price was reduced in an attempt to generate interest and speed up the sale process. A sales contract was entered into within two years of the deceased’s death however the sale fell through as the buyer was unable to secure finance. Two months later another sales contract was entered into with settlement occurring two years and two months after the deceased’s date of death.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 subsection 118-130(3) | Income Tax Assessment Act 1997 section 118-195