Private ruling: Capital gains t ax
Date of advice: 11 December 2017
Published: April 2018
Ruling period: Year ended 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 to late 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 late 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: Your parent passed away on mid 201A. You were made executor of their estate. Your parent’s will included instructions for the disposal of their main residence. The will was contested and in mid 201A a caveat was placed on the property forbidding the estate to act on the instructions of the will and liquidate the asset. Subsequent court proceedings and mediation hearings resulted in the removal of the caveat. Once court process and mediation orders were finalised, the property was made available for sale. With the housing market and construction developments slowing, the property was eventually sold in late 2017.

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