Private ruling: Deceased estates
Date of advice: 16 July 2018
Published: September 2018
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

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/XX/XXXX? | 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/XX/XXXX. 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 property was purchased before 20 September 1985 by the deceased’s spouse. The deceased and their spouse lived in property as their main residence. In 19XX the deceased’s spouse passed away. At this time the ownership of the property passed to the deceased. In early 20XX the deceased was placed in to hospital due to serious health issues that meant they could no longer live alone. The deceased continued to use the property as their main residence until they passed in late 20XX. Prior to the deceased’s death the future administrator of the estate, child and carer of the deceased started to go through traumatic personal hardship. This hardship continued after the deceased died and culminated in serious legal issues and family breakdown. Much of their time from the deceased’s death was spent dealing with these serious issues which were demanding. From mid 20XX to early 20ZZ the property was rented. The property was completely managed by a real estate agent for the entire time until it was sold. The probate process was commenced in late 20YY. You were informed by a probate specialist that probate could be a complex a protracted matter. After the first submission for probate in early 20YY the deceased’s will was rejected by the court due to an informal codicil attached to it. The second submission for probate commenced in mid 20YY. Probate was granted in mid 20YY. The property was sold and settled in early 20ZZ.

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