Private ruling: CGT – deceased estate – Commissioner’s discretion to extend the two year period to dispose of an inherited dwelling
Date of advice: 27 March 2019
Published: May 2019
Ruling period: Ye ar ending 30 June 2019
Date scheme commenced: 1 July 2018

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 will allow an extension of time. Further information about this discretion can be found by searching 'QC 52250' on ato.gov.au

Relevant facts and circumstances: The deceased acquired a dwelling (the dwelling). The deceased passed away on XX June 20XX. The dwelling was the deceased’s main residence. Probate was granted on a few months after the deceased’s death. The deceased’s children (the siblings), were appointed as executors and nominated as equal beneficiaries of the assets of the will. There has been conflict and disagreement between the siblings about what to do with the dwelling. Minor repairs were carried out to prepare the dwelling for sale. The dwelling has not been used to produce assessable income. A capital gain will be made upon the sale of the dwelling. The property was sold and settlement will occur on XX XXXX 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 subsection 118-130(3) | Income Tax Assessment Act 1997 section 118-195