Private ruling: Extension of time – CGT two year
Date of advice: 18 April 2019
Published: June 2019
Ruling period: 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Will the Commissioner Exercise 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 the commissioner will grant an extension to the 2 year period. The extension will be granted to the settlement date of the property.

Relevant facts and circumstances: The deceased died some years ago. Their relative was executor of their will. The property in the will had been inherited by the deceased and their relative on the death of their parent. The property was transferred to the deceased only at a later date. The deceased lived in the property until they moved to a Nursing Home. The property was leased out from that time. Their relative had difficulties executing their duties as executor because of illness. Letters of administration were granted about 3 years after the Date of Death The tenant did not cause any delay to placing the property on the market, The property was placed on the market within 6 months of the grant of administration. The property sold and settled within 3 months of being listed. The tenant vacated the property before settlement. None of the delay in selling the property was caused by the tenant or the fact that the property was tenanted.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 118-190 | Income Tax Assessment Act 1997 Section 118-195 | Income Tax Assessment Act 1997 Section 118-145