Private ruling: Capital gains tax
Date of advice: 15 August 2018
Published: October 2018
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Can you disregard the capital gain made on disposal of the property under section 118-195 of the Income Tax Assessment Act 1997? | 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 18 April 2018. Further information on the relevant factors and inheriting a dwelling generally can be found on our website ato.gov.au

Relevant facts and circumstances: The deceased passed away. The property was acquired by the deceased pre CGT. The deceased used the property as their main residence for the entire ownership period. The property was never used for income producing purposes. A trustee was granted probate and administration of the deceased Estate. The deceased’s off-spring (a beneficiary) was given a life interest in the property. (Copy of Will provided). The beneficiary moved to a nursing home due to ill health and old age. The property was prepared for sale and an agent was engaged. The property sold. The property settled.

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