Private ruling: Capital Gains Tax – deceased estate – extension of time
Date of advice: 30 October 2017
Published: March 2018
Ruling period: Year ending 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? | 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.

Relevant facts and circumstances: The deceased passed away in March 20XX. The deceased held a property and the property was the deceased’s main residence and was not used to produce assessable income. The deceased did not hold a Will and the grant of Letters of Administration were delayed as there were disagreements between the deceased’s relatives. The solicitor representing the deceased’s relatives was unable to obtain the Letters of Administration. The deceased’s relatives agreed in 20XX to allow the Public Trustee to administer the estate and the Public Trustee obtained the Grant of Letters of Administration in December 20XX. The Public Trustee confirmed the property held unpaid rates, land tax and other liabilities. The property held a large amount of waste, together with unauthorised shipping containers, structural materials and car bodies which had been accumulated by the deceased. There were further delays in selling the property as there were no other assets or funds in the estate to rehabilitate the property for sale and the property was unsuitable for sale to the general public. The property was required to be sold via private sale and a buyer was required to be found who was willing to purchase and take on the property on an ‘as is, where is’ basis. A buyer was found and the property settled in 20XX.

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


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