Private ruling: Capital gains tax
Date of advice: 2 February 2018
Published: June 2018
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

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 July 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 July 20XX. 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: Your parents both passed away in June 20XX. Whilst both were suffering medical illnesses, it was a shock to the families and the impact of losing both within a couple of days of each other, caused considerable stress and anxiety. The short period between the deaths ultimately caused delays in finalisation of both estates. The estates were already quite complex with the couple owning several properties, together with numerous share investments and other assets. Delays were caused due to calculation of capital gains tax liabilities for three separate properties for three separate beneficiaries. One estate was finalised in July 20XX. The second estate was finalised in February 20XX. The property was sold in July 20XX.

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