Private ruling: Capital gains tax
Date of advice: 22 June 2018
Published: September 2018
Ruling period: Financial year ended 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) in relation to the dwelling on the property and allow an extension of time until 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 deceased passed away in the 2014-15 financial year. At the deceased’s date of death, the deceased owned a property and resided in it as their main residence. Since the deceased’s death, the property has remained vacant and has not been used to produce assessable income. Complexities in the deceased’s estate resulted in a protracted period of time between their date of death and granting of probate in the 2017-18 financial year. Of note: ● the trustee had to identify shareholdings owned by the deceased using haphazard records, ● the trustee had to prepare and lodge outstanding tax returns, and ● the deceased’s spouse passed away just prior to the deceased and there were a number of associated arrangements between both parties that were poorly documented. As soon as probate was granted, the trustees worked towards administering the deceased estate and selling the property. The property has now been sold.

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