Private ruling: Deceased estate
Date of advice: 9 August 2018
Published: October 2018
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) in relation to the dwelling on the property and allow an extension of time until XXXX. | 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 XXXX. 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 purchased the property after 20 September 1985. The deceased used the property as their main residence. The deceased passed away on early 20XX. The deceased’s Will list’s three people as executors. The property didn’t produce any assessable income after the deceased’s death. Executors’ delayed seeking probate due to a dispute with deceased’s ex-spouse. A mutual resolution was reached between the executors and ex-spouse in mid 20XX for equal shares. Probate granted in early 20XX to two executors. The third party listed as executor on Will relinquished their role due to a conflict of interest with ex-spouse. Ex-spouse lodged legal action in early 20XX under Part IV of the Administration and Probate Act 1958 . Agreement between the ex-spouse and executors reached in early 20XX. A Deed of Family Agreement was executed within next two months. Executors did not to put the property up for sale until all disputes were resolved. Real Estate agent was contacted by an executor in early 20XX Real Estate provided a valuation of the property in mid 20XX. The Sales agency contract with real estate agent was signed by executors in mid 20XX. The first Open House was held within one month of agency contract. The property went to public auction within a month of first open house. One bid was received, well under valuation assessment, and negotiations failed due to the expensive local government sewerage upgrade requirements. In late 20XX an offer was received, but failed due to council zoning and requisition requirements. In early 20XX another contract failed with a developer due to finance. An unconditional contract of sale was signed on early 20XX. The property was settled in early 20XX.

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