Private ruling: Income tax – deceased estate – pre-CGT property
Date of advice: 12 June 2018
Published: August 2018
Ruling period: Year ending 30 June 20xx
Date scheme commenced: 1 July 20xx

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 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 20XX. 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 owned a property that was purchased prior to 1985. The property was used as his main residence until his date of death. There have been considerable delays with the solicitor dealing with the Estate since the death of the deceased. The estate is complex with a total of X beneficiaries. Two children of the deceased have continued to live in the property after the deceased’s death. One of the children (Individual A) has a disability and requires fill-time care from Individual B. The Will did not provide Individual A the right to occupy the property however an agreement between the family was that Individual A could remain at the property for as long as required due to their disability. Individual A and Individual B lived at the property prior to the deceased’s death. The property was sold in the 20XX financial year and settlement was received in early February.

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