Private ruling: Capital Gains Tax – deceased estate – extension of time
Date of advice: 4 October 2017
Published: February 2018
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? | 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. 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: The deceased passed away in late 20XX. The deceased held a property (the property) which was purchased prior to 20 September 1985. The property was the deceased’s main residence and was not used to produce assessable income. The deceased’s Will was contested by one of the beneficiaries, which caused delays in the sale of the property. Letters of administration were granted in early 20XX. The Relevant Court ordered in early 20XX that a named beneficiary had the right to occupy the property without a fee up to and including early 20XX. The possession of the property after this date was ordered to be handed to executor. The property was signed with an agent in mid 20XX and a contract was signed in mid 20xx. The property was sold and settlement occurred in late 20XX.

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