Private ruling: Deceased estate - extension of time - deceased's main residence
Date of advice: 12 March 2020
Published: April 2020
Ruling period: Year ended 30 June 2014
Date scheme commenced: 1 July 2013

Ruling: Q1: Will the Commissioner exercise the 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 DD/MM/YYYY for the pre-capital gains tax (pre-CGT) interests in the properties? | A1: Yes. Having considered the circumstances and the relevant factors, the Commissioner is able to apply the discretion under subsection 118-195(1) of the ITAA 1997, and allow an extension of time. Further information about the discretion 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: Properties were purchased pre capital gain tax (CGT) as joint tenants. A joint tenant passed away on the XX November 20XX with a share of the properties passing to the surviving joint tenant. The surviving joint tenant (the deceased) passed away on the XX October 20XX and the properties passed to you as per the will. Accordingly, you acquired two interests in the properties. An interest that was originally acquired by the deceased pre-CGT (the pre-CGT interest), and an interest that was acquired by the deceased post-CGT. Probate was granted. The properties were investment properties for the entire period of the ownership, however were vacant and derelict when you inherited them. No capital works were completed on the property prior to sale. You signed Contract of Sale for the properties on the XX December 20XX. Due to delays in the development, settlement for the properties didn't take place until the XX April 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1 997 subsection 118-195(1)