Private ruling: Capital gains tax
Date of advice: 4 August 2017
Published: November 2017
Ruling period: Financial year ending 30 June 2017
Date scheme commenced: 1 July 2016

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 XX/XX/2017 | 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 XX 2017. Further information on the relevant factors and inheriting a dwelling generally can be found on our website ato.gov.au and entering Quick Code QC17195 into the search bar at the top right of the page.

Relevant facts and circumstances: The deceased acquired a property after 19 September 1985. The dwelling on the property was the deceased’s principal place of residence except for a short period prior to the deceased’s death on XX/XX/2015. During this time, the deceased was a resident of a nursing home. The dwelling was not used to produce assessable income at the time of the deceased’s death or the period prior to disposal. The executors sold the property with settlement occurring on XX/XX/2017, more than 2 years after the deceased’s death. The delay in selling the property was due to the executor (who also lived at the residence) having to clear the house for sale and arrange their own relocation to a retirement village.

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