Private ruling: Capital Gains Tax – deceased estate – extension of time
Date of advice: 22 September 2017
Published: February 2018
Ruling period: Year ending 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 to December 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 December 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 QC52250 into the search bar at the top right of the page.

Relevant facts and circumstances: The deceased passed away in December 20xx. The deceased held a property which was the deceased’s main residence and was not used to produce assessable income. Probate was granted in July 20xx to Public Trustee. The property was placed for auction and a contract signed in September 20xx. The settlement was due in November 20xx. In October 20xx a caveat was lodged by an individual claiming to be the deceased’s living partner. As a result of the caveat, the contract of sale between the purchaser and the Public Trustee was terminated on in December 20xx. No action could be taken on the property by Public Trustee whilst the caveat was in place. This caused delays to the sale of the property. The Relevant Court ordered Public Trustee to sell the property for a set consideration to set buyers, the caveat was withdrawn in December 20xx and the property settled in the same month.

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