Private ruling: Capital Gains Tax and the Commissioner's discretion to extend the two year period
Date of advice: 20 July 2017
Published: November 2017
Ruling period: Year ended 30 June 2017
Date scheme commenced: 1 July 2016

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 to March 20xx? | 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 March 20xx Further information on the relevant factors, and inheriting a dwelling generally, can be found on our website ato.gov.au by entering Quick Code QC17195 into the search bar at the top right of the page.

Relevant facts and circumstances: The deceased passed away in March 20XX. The deceased and their spouse previously purchased a property in 19XX. The property was held as joint tenants. In December 20XX the deceased’s spouse passed away. The property was transferred to the deceased. The property was used to run stock since its acquisition in 19XX. This activity ceased by 30 June 20XX due to the deceased’s spouse passing away. During the administration of the Estate, the Estate beneficiaries disputed the Will. There was also a lack of urgency in signing documents and making decisions. Combined, these challenges have drawn out the process of winding up the Estate. The property was sold on X February 20XX and settlement occurred on X March 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 118-195(1).