Private ruling: CGT - deceased estate
Date of advice: 20 June 2017
Published: October 2017
Ruling period: Year ending 30 June 2017
Date scheme commenced: 1 July 2016

Ruling: Q1: Will the Commissioner exercise his discretion under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the two year time period? | 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. 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 died on XX December 20XX. Probate was granted on XX April 20XX. You are the sole beneficiary and the executor of the estate. The deceased acquired a property after 20 September 1985, which was their main residence until the time of their death. The property has remained vacant since the death of the deceased. You approached a real estate agent to sell the property in May 20XX. You were advised that the property would be hard to sell in its current state. You commenced works on the property to lift the condition to a saleable state. The house was listed for sale XX December 20XX. The property sold on XX February 20XX and settlement occurred on XX April 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 118-195 (1).