Private ruling: Capital Gains Tax and the Commissioner's discretion to extend the two year period
Date of advice: 22 July 2017
Published: November 2017
Ruling period: Year ended 30 June 2017
Date scheme commenced: 1 July 2016

Ruling: Q1: Can you disregard any capital gain or loss that arises from the disposal of the property under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes

Relevant facts and circumstances: The deceased passed away on X January 20XX The deceased owned a property that had always been the deceased’s principal place of residence and had never been used for income producing purposes. The property was purchased by the deceased and their late spouse in 19XX. Under the terms of the deceased’s Will, the deceased’s child had the right of occupancy of the property for as long as the child wishes, provided that the child pays the rates and taxes, insurance premium and maintains the property to the satisfaction of the Executors satisfaction. When, in the opinion of the Executor, the deceased’s child had ceased to live in the house permanently, the property would be bequeathed to the deceased’s children and step children that survive the deceased in equal shares. The deceased’s child lived at the property until X January 20XX. The property has now been sold. The Executor is yet to distribute the proceeds of the sale to the respective beneficiaries.

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