Private ruling: Capital gains tax (CGT) - deceased estate - two- year extension
Date of advice: 22 June 2020
Published: August 2020
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise his discretion under section 118-195 of the Income Tax Assessment Act 1997 to allow an extension of time to the two- year main residence exemption on a dwelling to X XXXX 20XX? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time. Further information about this discretion can be found by searching 'QC 52250' on ato.gov.au

Relevant facts and circumstances: The deceased died a number of years ago. The deceased purchased a property a number of years ago post CGT. Probate was granted. A life interest was granted to the deceased's spouse. The deceased's spouse lived in the property until 20XX when they moved into another property purchased by their family. The deceased's spouse remained in the property purchased by their family until they moved into retirement care in 20XX. The property was rented out for the period the deceased's spouse lived in the property purchased by her family until it was sold in 20XX. The reason for it being rented was to cover expenses incurred by the deceased's spouse. The executors did not sell the property at to ensure they complied with the will and ensured that the deceased's spouse had comfortable and appropriate accommodation. This meant that the life tenancy and the complexity of the administration of the will delayed the sale of the property.

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