Private ruling: Capital gains tax and an extension to the deceased estate 2 year period.
Date of advice: 22 July 2017
Published: November 2017
Ruling period: Year ending 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Will the Commissioner exercise his discretion under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the two year time period until XX 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 XX 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: The deceased died on XX May 20XX. The deceased and their spouse acquired the property in 19XX. The deceased acquired their spouse’s ownership interest in the property in 20XX upon their death. The property was the deceased’s main residence from acquisition to the time of their death. The property has remained vacant since the deceased’s death. A and B (the executors) were appointed executors for the estate. The property required significant general maintenance to be completed to bring the property to a saleable condition. There was also work required to make the property structurally sound. During the administration of the estate, both Executors suffered from medical conditions which caused further delays in administration. The property was sold on XX May 20XX, with settlement occurring on XX July 20XX.

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