Private ruling: Capital gains tax and the Commissioner's discretion to extend the two year period
Date of advice: 2 March 2020
Published: April 2020
Ruling period: Year ending 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 XX June 20XX? | A1: Yes. Having considered the circumstances and the relevant factors, the Commissioner is able to apply the discretion under subsection 118-195(1) of the ITAA 1997, and allow an extension of time until XX June 20XX. Further information about this discretion can be found by searching 'QC 52250' on ato.gov.au .

Relevant facts and circumstances: The deceased acquired a residential property (the property) in 20XX which was used as a main residence. The deceased died in 20XX. The beneficiaries are in continued legal proceedings to challenge the terms of the Will and the executors, and as a result the executors cannot agree to dispose of the property until those legal challenges have been resolved. It is anticipated that the property will be sold before 30 June 20XX.

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