Private ruling: CGT – deceased estate – Commissioner’s discretion to extend the two year period
Date of advice: 18 April 2019
Published: June 2019
Ruling period: Year ending 30 June 2019
Date scheme commenced: 1 July 2018

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 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: The deceased acquired a dwelling before 20 September 1985. The land attached to the dwelling is less than two hectares. The deceased passed away after 20 September 1985. The dwelling was the deceased’s main residence at the time of death. The dwelling was not used to produce assessable income. The deceased’s Will was challenged in the Supreme Court. The dwelling was occupied by the deceased’s spouse as their main residence until they relocated to an aged care facility. The Supreme Court granted a court order giving ownership rights to the deceased’s spouse. The dwelling remained vacant until it was sold. The dwelling was advertised and sold within two months after the court order was granted. Settlement occurred four years after the deceased’s death.

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