Private ruling: Capital gains tax – Commissioner’s discretion
Date of advice: 7 March 2018
Published: June 2018
Ruling period: Year ending 30 June 2017
Date scheme commenced: 1 July 2016

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and extend 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. The property was acquired by the deceased in XXXX and was their main residence from the time of purchase. The deceased’s Will left the property to you. The deceased’s partner continued to reside in the property after the deceased’s passing. You were required to go overseas to finalise the deceased estate. There was a lengthy court case before you were able to evict the deceased’s partner. The deceased’s partner was eventually removed from the property. Once the court case was finalised, the property was advertised for sale and was sold.

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