Private ruling: Capital gains tax and deceased estate
Date of advice: 9 January 2018
Published: June 2018
Ruling period: XX June 20XX
Date scheme commenced: XX July 20XX

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 until settlement date? | 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 settlement date. Further information on the relevant factors and inherited dwellings generally can be found on our website ato.gov.au and ente ring Quick Code QC52246 into the search bar at the top right of the page.

Relevant facts and circumstances: Your relative owned property overseas purchased on or around 19XX. This was the main residence of your relative and it was the only asset they held. The property title was in your relative’s name. Your relative was the only child and had their own family. At some stage in the 19XX’s the relative moved into this dwelling with their own family to care for your relative. Your relative passed away on or around 19XX. There was no Will and the title of the property was not transferred into any other person upon their death. The administration of the estate for your relative was finalised. Your relative remained in this dwelling as their main residence overseas and lived in this property for over 30 years. Your other relative passed away overseas in 20XX and they also did not leave a Will. Upon your other relative’s death, your solicitor overseas transferred the ownership of the property into your other relative’s name. You and one other were the beneficiaries and the title of the property was then transferred into your names accordingly. You no longer resided overseas as you were living in relevant country with your family and you were administering the estate from relevant country. A family dispute ensued causing delays in finalising the estate of your other relative and this was resolved in 20XX. Normal repairs and maintenance needed to be conducted on the property preparing it for sale. The house sold in 20XX and settlement occurred on or around 20XX. Assumption Your relative as the sole beneficiary of the said property overseas was absolutely entitled to the asset when it passed to them upon your relative’s death. Upon your other relative’s death you as a joint beneficiary are also entitled to the asset when it passed to you and one other.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10, | Income Tax Assessment Act 1997 section 118-195 and | Income Tax Assessment Act 1997 subsection 118-195(1).