Private ruling: Capital Gains Tax – decease estate – extension of time
Date of advice: 11 October 2017
Published: March 2018
Ruling period: Year ending 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. 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 in late 20XX. The deceased held a property (the property) which was purchased prior to 25 September 1985. The deceased vacated the property in 20XX or 20XX to be cared for by family and the property remained the deceased’s main residence. The property was rented to family members and others prior to and following the deceased's death. Probate of the deceased Will was granted in early 20XX. The property was under an option agreement to be sold before the deceased passed away. Settlement of this contract of sale unexpectedly fell through for circumstances outside the beneficiary’s control. The developer ceased this agreement about the same time as probate was granted in early 20XX. Another option agreement was signed with a different developer in X or Y 20xx and the contract for sale was signed in Y 20XX. There was a delay in the contract of sale due to apparent problems with Council. Settlement of the property will be in late 20XX.

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