Private ruling: Deceased estate - extension of time - deceased's main residence
Date of advice: 3 March 2020
Published: April 2020
Ruling period: Year ending 30 June 2020
Date scheme commenced: 1 July 2019

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? | 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, intestate. The deceased owned a property, acquired post CGT and was their main residence until there passing. No person has lived in the property since the deceased's passing nor had it been used to produce assessable income. Letters of Administration were granted. From the time of commencement of the administration of the estate, a dispute was put upon the executor, and lodged a caveat against the certificate of title of the property. The property could therefore not be sold until such time that the caveat was removed. Eventually, the caveat was withdrawn and settled. Immediate steps were taken to clear the property and prepare it for sale and no capital works were completed on the property prior to sale. The property was listed for sale and sold with settlement occurring.

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