Private ruling: Capital gains tax
Date of advice: 20 February 2018
Published: June 2018
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? | 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 to dispose of the property. Further information on the relevant factors and inheriting a dwelling generally can be found on our website ato.gov.au and entering Quick Code QC17195 into the search bar at the top right of the page.

Relevant facts and circumstances: (The deceased) died in 2014. The deceased resided in the property which was their main residence at the time of their death. The property was not rented during or after their death. Some doubts had arisen as to the testamentary capacity of the deceased. Due to cause of death the Public Trustee was required to prove that the deceased had capacity to make their last will. The Public Trustee requested copies of the medical records for the deceased, as you were required to lodge the medical record with the court to substantiate your request for an order to administer (probate). The Public Trustee received an order to administer in 2016. The property was on the market for an auction, however you had an unsuccessful auction in September 2016. The property was finally disposed of in May 2017.

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