Private ruling: Capital gains tax – deceased estate – two year discretion
Date of advice: 24 January 2019
Published: May 2019
Ruling period: Period 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 extend the 2 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 about this discretion can be found by searching 'QC 52250' on ato.gov.au.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. The deceased acquired a property as joint owner with their spouse and became the sole owner when his spouse passed. The property was the deceased’s main residence and not used for income producing activities before their death and remained vacant until sold. The deceased had a Will. Probate was initially granted on date. The executor passed away leaving the administration of the estate incomplete. Litigation ensued with respect to who should be appointed administrator of the estate. The Supreme Court issued judgment/order. Formal grant of Letters of Administration were issued administrator. The administrator commenced marketing the property. A sales contract on property was signed and property settled.

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