Private ruling: Income Tax – deceased estate – extension of time
Date of advice: 11 September 2017
Published: January 2018
Ruling period: Year ended 30 June 2017
Date scheme commenced: 1 July 2016

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? | 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. Further information on the relevant factors, and inheriting a dwelling generally, can be found on our website ato.gov.au by entering Quick Code QC 52250 into the search bar at the top right of the page.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. The deceased passed away in 20XX. Probate of the will was granted in 20XX. The deceased left a property (the property) and other assets to their children and grandchildren. The deceased resided in an aged care facility at the time of death. The property was the deceased’s main residence and was not used to produce assessable income. A relative of the deceased who is also a beneficiary of the estate resided at the property prior to and after the deceased’s death. The will was subject to a family provision claim by the deceased’s relative The claim was settled in the Supreme Court in 20XX. However under the courts order the deceased’s relative was given occupancy until 20XX and the property was unable to be sold during this time. The deceased’s relative vacated the property in 20XX which was left in a neglected state. The executors of the estate contacted real estate agents to sell the property, however they advised that in order to sell the property, clearing of the inside and outside of the property was required, in addition to repairs and yard maintenance to the property. The executors of the estate signed an agreement with a real estate agency. A contract was entered into to sell the property and settlement has taken place.

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