Private ruling: Income Tax – Capital Gains – Deceased Estate
Date of advice: 20 July 2017
Published: November 2017
Ruling period: Year ending 30 June 2017
Date scheme commenced: 1 July 2015

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 QC17195 into the search bar at the top right of the page.

Relevant facts and circumstances: The deceased died at a point in time and did not leave a Will. The deceased purchased a property located at which was used as their main residence. There is only one dwelling on the property and is not more than two hectares. The property remained vacant since the deceased’s death. The deceased had two siblings, Sibling A and Sibling B. Sibling A approached your firm for an initial appointment and when terms of engagement were signed. You and Sibling A made an application for Letters of Administration, however due to complications you decided to apply for the Letters of Administration solely. Letters of Administration was granted in 20XX. Sibling A caused a number of delays with selling the property, in addition the estate was complex with numerous properties and assets. The property could not be sold until Letters of Administration were granted. An agreement to sell the property was signed on 20XX. Settlement for the property occurred in 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-195