Private ruling: Capital Gains Tax - Deceased Estate - 2 year period
Date of advice: 8 November 2017
Published: April 2018
Ruling period: Year ending 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Will the Commissioner exercise his discretion under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the two year time period until XX August 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 XX August 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 died on XX February 20XX. The deceased and their late spouse acquired the property as joint tenants before 20 September 1985. The deceased acquired their late spouse’s interest in the property upon the spouse’s death on XX July 20XX. The Executor of the deceased’s will was their late spouse. The Public Trustee was appointed as Trustee of the estate, however they renounced all right and title to the probate and execution of the deceased’s will on XX May 20XX. K, the deceased’s relative was appointed Trustee with the granting of the Letter of Administration on XX July 20XX. The property remained vacant after the deceased’s death. The property was broken into and damage was caused to the property on XX August 20XX. Repairs to the property were completed by XX February 20XX. The property was placed on the market for sale in April 20XX and a contract for sale was signed on XX July 20XX, with settlement occurring on XX August 20XX.

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