Private ruling: Capital gains tax - deceased estate - Commissioner's discretion to extend the two year period
Date of advice: 26 June 2019
Published: August 2019
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 until settlement? | A1: Yes Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time. Further information about this discretion can be found by searching 'QC 52250 ' on ato.gov.au

Relevant facts and circumstances: Delays were caused by the complex nature of the estate dealings where the rights of the beneficiaries took an extensive time to be established under the law. The deceased passed away on 20XX Probate was granted on 20XX The sale of the property was settled on 20XX The last tenants in the property vacated on 20XX Significant repairs had to be conducted on the property to bring to a saleable condition. These repairs were completed on the 20XX and the property sold on 20XX. There were significant complications in administering the estate contributing to the delay.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 104-10, | Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 subsection 118-195(1)