Private ruling: Capital gains tax and a deceased estate
Date of advice: 4 June 2018
Published: August 2018
Ruling period: Year ending 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 until settlement date? | 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 settlement date. Further information on the relevant factors and inherited dwellings generally can be found on our website ato.gov.au and entering Quick Code QC52246 into the search bar at the top right of the page.

Relevant facts and circumstances: Your relative purchased property in 20XX which was their main residence. The property was more than two hectares and at no time was used to produce income. You relative passed away in 20XX. In their Will a relative was appointed as the executor and trustee of the estate, however this relative did pre-decease them. In the event the relative did pre-decease, you were also named to be appointed as the executor and trustee. As the executor you have been unable to attend fully to the deceased’s estate due to unforeseen circumstances arising to other personal issues. Since the deceased’s date of death you have actively had the property on the market and for sale, which is located in a geographically challenging area. A contract of sale was submitted in 20XX and after two attempts by the proposed purchaser to obtain finance this was rejected and the contract fell through. The property was placed on the market again and sold, with settlement date in 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10, | Income Tax Assessment Act 1997 section 118-195 and | Income Tax Assessment Act 1997 subsection 118-195(1).