Private ruling: Capital Gains Tax and the Commissioner's discretion to extend the two year period
Date of advice: 5 August 2017
Published: November 2017
Ruling period: Year ended 30 June 2017
Date scheme commenced: 1 July 2016

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 November 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 November 20XX. Further information on the relevant factors, and inheriting a dwelling generally, can be found on our website ato.gov.au by entering Quick Code QC52250 into the search bar at the top right of the page.

Relevant facts and circumstances: Your parent (the deceased) passed away in July 20XX. The deceased left their house and other assets to their children and grandchildren. The deceased’s house was their main residence before their death, and it was not used to produce assessable income. There were X beneficiaries of the deceased’s Will. The beneficiaries involved X families (X children and X grandchildren). The joint executors were yourself and Person A Person A resides in another state. Due to this, majority of all practical responsibility in carrying out the executor duties were left with you. Probate of the Will was granted in late 20XX. Person A began suffering with an illness from the pressure of managing the estate and the emotional challenges they faced after your parent passed away. This limited their ability to travel to you to assist you with the estate. You have also been diagnosed with an illness which has affected your ability to act as the executor of the estate and finalise the sale of the property within the required two year time frame. The property has now been sold and settled in late 20XX.

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