Private ruling: Commissioner's discretion
Date of advice: 1 November 2017
Published: March 2018
Ruling period: Year ending 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Will the Commissioner exercise his discretion under section 118-195 pf the Income Tax Assessment Act 1997 (ITAA 1997) and extend the two year time limit until 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 and entering Quick Code QC52250 in to the search bar at the top right of the page.

Relevant facts and circumstances: The deceased died on XX January 20XX. The deceased acquired the property before 20 September 1985. The property was the deceased’s main residence at the time of their death. The property has remained vacant since the deceased’s death. The executor M, was appointed the Executor for the deceased estate with the granting of the Letters of Administration on XX April 20XX. After the deceased’s death the property was not to be sold for at least one year as is the custom in the deceased’s faith. The deceased had verbally indicated their wishes on how the estate was to be distributed and who the beneficiaries would be, however the deceased did not create a will prior to their death. There were claims made against the estate by surviving family members of the deceased, which caused delays in the administration of the estate. During the administration of the estate, M’s spouse became seriously ill and required care. M’s spouse died in 20XX. The property was placed on the market and sold on XX July 20XX, with settlement happening on XX October 20XX.

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


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