Private ruling: Capital gains tax deceased estate- two year extension
Date of advice: 1 August 2017
Published: November 2017
Ruling period: Year ended 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 June 20XX? | 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 June 20XX. Further information on the relevant factors, and inheriting a dwelling generally, can be found on our website ato.gov.au by entering Quick Code QC17195 into the search bar at the top right of the page.

Relevant facts and circumstances: You and your sibling inherited a property from your parent when they passed away in early-mid 20XX. The property was purchased before 20 September 1985. The property earned a small amount of rental income in the years after your parent passed away and before the property was sold. You were officially diagnosed with a medical condition in mid-late 20XX. Due to your deteriorating health you were not fully able to cooperate with your sibling to arrange the sale of the property. As a result of this, the two year exemption period was exceeded. A contract for the sale of the property was signed in mid 20XX, approximately two years and three months after the date of death.

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