Private ruling: CGT - deceased estate – 2 yr discretion
Date of advice: 2 February 2018
Published: June 2018
Ruling period: Year ended 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 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.

Relevant facts and circumstances: The deceased left a valid Will. One of the assets of the deceased estate was the deceased’s main residence, a post capital gains tax (CGT) asset. The deceased did not treat any other property as their main residence during their ownership period. The property has never been used to produce assessable income at any time during the deceased’s ownership period or since death. As the original executor/trustee was unable to handle the estate, an application was made for a grant of letters of administration. Letters of administration were issued and a real estate agent was engaged soon after. The property was contracted for sale and settlement has taken place.

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