Private ruling: Capital gains tax – deceased estate (2 year discretion)
Date of advice: 30 May 2018
Published: September 2018
Ruling period: 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 extend the 2 year period? | A1: Yes. Having considered the 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 passed away in XXXX. The deceased used the property as their main residence for their entire ownership period. The property was never used for income producing purposes. The Public Trustee of State A was appointed as executor of the deceased estate. The administration of the estate was significantly delayed due to a family provision claim made by one of the children. The Public Trustee was unable to dispose of the property until the matter was settled. A court order was issued which ordered the property be sold. The Trustee then cleared the property and listed it for sale. A contract was signed and the property was sold.

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