Private ruling: Capital gains tax – pre-CGT land
Date of advice: 7 August 2018
Published: October 2018
Ruling period: 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) in relation to the dwelling on the property and allow an extension of time until x xxx xxxx? | 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 x xxx xxxx. Further information on the relevant factors and inheriting a dwelling generally can be found on our website ato.gov.au and entering Quick Code QC 52250 into the search bar at the top right of the page.

Relevant facts and circumstances: Your parent passed away on xx xxx xxxx. You are a beneficiary of your late parent’s estate. In the Will your parent left you a half share in a property. The deceased purchased the property prior to 20 September 1985. All property in the Will was held in trust until one year after the date of death in case of a claim against the estate. In xx xxx xxxx a claim against the estate was made by another beneficiary. Settlement of the dispute was reached in xx xxx xxxx with agreement reached and you received your share of the property and the title was transferred. The property was placed on the market in xx xxx xxxx with a contract for sale signed in xx xxx xxxx and settlement occurring on xx xxx xxxx.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 subsection 118-130(3) | Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 subsection 118-195(1)