Private ruling: Capital gains tax – deceased estate – Commissioner’s discretion to extend the two year period
Date of advice: 7 March 2019
Published: June 2019
Ruling period: Year ending 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? | 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. The deceased passed away. The dwelling was the deceased’s main residence. At the time of the deceased’s death the property was valued at $X! The dwelling was bequeathed to the deceased’s godchild and the deceased’s friend. The terms of the deceased’s Will created an enforceable legal impediment to the sale of the property. Several years later, the impediment to sale had ended. The dwelling was cleaned, repaired and sold a few months later for $X!. Settlement took place X years after the deceased’s date of 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 | Income Tax Assessment Act 1997 subsection 118-195(1)