Private ruling: Capital gains tax
Date of advice: 9 February 2018
Published: June 2018
Ruling period: Financial year 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) in relation to the dwelling on the property and allow an extension of time until XX/XX/XXXX? | 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 XX/XX/XXXX. Further information on the relevant factors and inheriting a dwelling generally can be found on our website ato.g ov.au and entering Quick Code QC52250 into the search bar at the top right of the page.

Relevant facts and circumstances: The deceased purchased the dwelling prior to 20 September 1985. The property was the deceased’s main residence until their passing in late 20XX. One of the beneficiaries commenced clearing the property in preparation for sale in early 20XX. A valuation was carried out on the property in early 20XX. When the property was listed, a number of sale contracts fell through after the buyers were not satisfied with the Building and Pest Inspection Reports. The house was sold in early 20XX. The land was less than two hectares. The property was never rented.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 118-195