Private ruling: Deceased Estate - extension of time - deceased's main residence
Date of advice: 14 February 2020
Published: March 2020
Ruling period: Year ended 30 June 2017 | Year ended 30 June 2018 | Year ended 30 June 2019 | Year ended 30 June 2020
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the 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 to DD/MM/YYYY? | A1: Yes. Having considered the circumstances and the relevant factors, the Commissioner is able to apply the discretion under subsection 118-195(1) of the ITAA 1997, and allow an extension of time. Further information about the discretion 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 deceased passed away. The deceased owned and occupied a dwelling. The property was the deceased main residence and wasn't used for income producing purposes. The deceased left a will. The property was prepared and listed for sale with a real estate. In XXXX a severe storm damaged the property. An insurance review was undertaken and the property was deemed uninhabitable. The property was withdrawn from sale at this time while construction was assessed and carried out. Upon completion of the restoration works, the property was relisted with a real estate agent. A contract for sale was signed for the property and settlement occurred.

Relevant legislative provisions: Income Tax Assessment Act 1 997 subsection 118-195(1)