Private ruling: Capital gains tax
Date of advice: 10 July 2018
Published: September 2018
Ruling period: Financial year ended 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.gov.au and entering Quick Code QC52250 into the search bar at the top right of the page.

Relevant facts and circumstances: The deceased acquired the property after 20 September 1985. The deceased lived at the property as their main residence until their death on XX/XX/XXXX. Administration of the deceased’s estate was delayed due to the following: ● The executor had difficulty in locating important documents relevant to the administration of the deceased’s estate due to the hoarding of documents and paperwork by the deceased ● After the deceased’s date of death, the executor became extremely ill which made it difficult for them to perform their duties as executor in a timely manner Following the resolution and management of the above, the property was listed for sale and sold at auction. The buyer requested an extension of the date of settlement to XX/XX/XXXX due to cash flow difficulties. The property was settled on XX/XX/XXXX.

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