Private ruling: Income tax - capital gains tax – deceased estate – exemption to 2 year rule – extension of time
Date of advice: 8 March 2018
Published: June 2018
Ruling period: Period ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the time limit? | A1: Yes

Relevant facts and circumstances: The deceased passed away in the 20XX financial year. The deceased acquired the dwelling before 20 September 1985. The dwelling was the deceased’s main residence. One beneficiary has resided in the dwelling rent free at the time of the deceased’s death; and has continued to reside in the dwelling rent free after the deceased’s death. The dwelling has not been used to produce income between the date of death of the deceased and the sale of the dwelling. The dwelling was sold in the 20XX financial year.

Relevant legislative provisions: Subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997)

Reasons for decision: Summary: 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 on the relevant factors and inheriting a dwelling generally 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.