Private ruling: Capital Gains Tax and the Commissioner's discretion to extend the two year period
Date of advice: 7 November 2017
Published: March 2018
Ruling period: Year ended 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) and allow an extension of time to the two year period to XX October 20XX? | 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 October 20XX. Further information on the relevant factors, and inheriting a dwelling generally, can be found on our website ato.gov.au by entering Quick Code QC17195 into the search bar at the top right of the page.

Relevant facts and circumstances: You inherited a property as a beneficiary of a Will on XX April 20XX. The property was acquired by the deceased prior to 1985 and was the deceased’s principal place of residence. From the date the property was transferred to you, you were activity looking trying to sell the property. While the property was for sale, you rented it out. The property went under contract on XX September 20XX and settlement occurred on XX October 20XX. The settlement of the property fell outside of the two year period by nine days due to a variation of the content of the sales contract which was out of your control.

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