Private ruling: Deceased Estate
Date of advice: 11 October 2017
Published: March 2018
Ruling period: Year ended June 20XX
Date scheme commenced: 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 early 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 early 20XX. Further information on the relevant factors and inheriting a dwelling generally can be found on your website ato.gov.au by entering Quick Code QC52250 into the search bar on the top right of the page.

Relevant facts and circumstances: The property situated at Chadstone VIC was purchased as vacant land Jointly by the deceased Pre-CGT. The dwelling was built on the land Pre-CGT and the property was used as their main residence and family home. The deceased spouse resided in the property up until date of death in mid 20XX. The deceased continued to reside in the property until late 20XX, deteriorating health forced the deceased to reside at their family’s homes and eventually at hospital till date of death late 20XX. The property’s land size is less than two hectares. Whilst the deceased resided in the property, no major capital works were performed and the property has never been used to produce assessable income. No other properties were owned by the deceased as their main residence. Upon the date of death of the deceased, the property remained vacant and one of family members maintained the property. For a time, family continued to reside in the property but the property was not income producing. In accordance to the deceased Will dated early 19XX their spouse was the sole executrix of their estate. However, as the spouses passed prior to the deceased their children were appointed joint executrices of the deceased will and Trustee of the Estate. Family approached the estate Lawyers in early 20XX to be executor of the deceased estate. Another family member was also named as the joint executor of the deceased’s will, several unsuccessful attempts were made to locate and other family. The Estate Probate was granted to Lawyers on mid 20XX. In late 20XX Real Estate was appointed to sell the property and the property was immediately placed for auction which occurred on late 20XX. The property was sold at auction for $X subject to a 120-day settlement. Settlement occurred on schedule, on early 20XX.

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