Private ruling: Capital gains tax
Date of advice: 11 August 2017
Published: November 2017
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Will the Commissioner exercise his 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 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.

Relevant facts and circumstances: The deceased purchased a property located at X (the property). The property was the deceased’s main residence until they passed away in 20XX. The deceased’s will stated that their spouse could live in the property for the remainder of their life, but the property was passed to you (the deceased’s daughter). The spouse was not an owner of the property. The spouse moved into aged care in January 20XX. It was unknown whether they would move back into the property as they had been in and out of hospital and respite. It is certain they will not move back into the property, so the property is able to be sold. No rental income was earned from the property. The property has been sold with settlement date November 20XX.

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