Private ruling: CGT - deceased estate, two year exemption
Date of advice: 26 October 2018
Published: February 2019
Ruling period: 1 July 2017 to 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 the circumstances and the relevant factors, the Commissioner will allow a short 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 passed away. The deceased had a dwelling acquired before 20 September 1985 (the dwelling). The dwelling was the deceased main residence. The dwelling has never been used for assessable income. The decease did not have a will. A sibling was located living overseas which delayed the issuing of the Letters of Administration. The dwelling was vacant from the date of death of the deceased until it was sold. The date of settlement was just over two years from the date of death of the deceased.

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)