Private ruling: CGT-extension of time
Date of advice: 17 December 2018
Published: April 2019
Ruling period: Year ending 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Will the Commissioner exercise his discretion to extend the two year period under section 118-195 of the Income Tax Assessment Act 1997 for a property until September 2018? | A1: Yes 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 until DDMMYY. 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.

Relevant facts and circumstances: The deceased died in the 2008 income year. The property was purchased by the deceased in 197X. The property was the deceased’s main residence until their death. The property was less than two hectares. The property was not rented out prior to their death or after their death. The property was sold in the 2018 income year. The delay in selling the property within the two year time period was due to searching for a valid Will and disputes between the appointed administrators of the estate. Probate was not granted until March 2017 at which point their two children were appointed administrators. The two administrators can only communicate through lawyers due to a severe dispute. After probate was granted there was an issue locating the title of the property. Once the title was located the property was placed on the market. The property was sold in July 2018 with settlement occurring in September 2018.

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