Private ruling: Capital gains tax
Date of advice: 14 October 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? | 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 QC52250 into the search bar at the top right of the page.

Relevant facts and circumstances: The property was purchased in 197X and was the main residence of the deceased until their death in August 20XX. The property was originally purchased by the deceased and their spouse who died in 19XX. The deceased became the 100% owner of the property on their spouse’s death. The deceased’s child moved into the property for a year before they died in August 20XX. The child was one of three children who were entitled to the property on the deceased’s death. The child died intestate which resulted in delays in the administration of their estate. The remaining family members had to deal with the administration of two estates following the death of two family members in a short period of time. The deceased’s child died intestate and it took significant time to complete letters of administration. The current administrator of the estate was appointed in 20XX. The original title to the property was lost and a replacement was not obtained until early 20XX. The property has never been used to produce assessable income. The property was vacant from the deceased’s child’s death until the property was sold with settlement date December 20XX.

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


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