Private ruling: Income tax - capital gains tax – deceased estate – exemption to 2 year rule – extension of time
Date of advice: 9 March 2018
Published: June 2018
Ruling period: Period 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) to extend the time limit. | A1: Yes

Relevant facts and circumstances: The deceased acquired the dwelling after 20 September 1985. The deceased passed away in the 2 0XX financial year. The deceased died intestate. The Letters of administration were issued in the 20XX financial year. Settlement for the sale of the dwelling occurred in the 20XX financial year. The dwelling was not used to produce income between the date of death and the sale of the dwelling.

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

Reasons for decision: Summary: Having considered the circumstances and the factors outlined above, 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.