Private ruling: Capital gains tax – deceased estate
Date of advice: 19 December 2017
Published: May 2018
Ruling period: 30 June 2018
Date scheme commenced: 1 July 2017

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 entering Quick Code QC52246 into the search bar at the top right of the page.

Relevant facts and circumstances: Your relative was born overseas and moved to Australia in the nineties and became an Australian resident. Your relative purchased property in 19XX and this was their main residence. This dwelling was not used to produce income. As it was the main residence, another relative also resided at this property. After spending most of their life here in Australia your relative returned overseas in 20XX, but migrated between the two countries for a limited time. Your relative had to remain overseas due to health reasons. Your relative continued to treat the property in Australia as their main residence and remained an Australian resident while overseas. Your relative passed away in 20XX. Due to their dual citizenship you had to communicate with solicitors, courts and other Government agencies not just here in Australia but also overseas. It was a lengthy process for you to obtain: ● A valid will ● An authenticated Death Certificate from the Department of Foreign Affairs and Trade overseas ● Letters of administration and ● Probate You were appointed the executor in 20XX. You then had to attend to the property and prepare it for sale. It was placed on the market as soon as practical in 20XX. The property sold and settlement occurred in 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 section 118-195.