Private ruling: Capital gains tax – deceased estate
Date of advice: 14 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 purchased property and this became their main residence. Other relatives also lived at this dwelling; their main residence and cared for your relative Your relative passed away in 20XX and your other relatives remained at this dwelling. The estate was being administered by you and your relatives. The transfer of ownership could not be completed as the original title document could not be located. It was meant to be held at a financial institution (bank). The bank could not locate this document and it took X months to resolve. The bank replaced the original title and the transfer of ownership began. As your relatives still resided in this property, a dispute commenced about the sale. Negotiations took place between you and your relatives in 20XX, and your relatives offered to purchase your share. Appraisals and market valuations commenced in 20XX and the application for transfer was lodged with the Relevant Office. This application was rejected as the appraisal did not have a licenced valuation number and the necessary steps were undertaken. This was completed in 20XX. Further delays arose as the Relevant Office also requested a copy of the will and probate. Settlement occurred in 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10, | Income Tax Assessment Act 1997 section 118-195 and | Income Tax Assessment Act 1997 subsection 118-195(1).