Private ruling: Deceased estate and Commissioner’s discretion
Date of advice: 22 May 2018
Published: July 2018
Ruling period: Year ending 30 June 201X
Date scheme commenced: 1 July 201X

Ruling: Q1: Will the Commissioner under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) allow an extension of time to the two year period 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 purchased the property prior to 20 September 1985. They held 100% ownership in the property. It was their main residence prior to their death. The deceased died in late 20XX. You and your sibling are the executors and trustees of the deceased’s Will. Probate was granted in early 20YY. Under the Will you and your sibling were bequeathed an equal share of the property. The property was transferred from the estate to the beneficiaries after the grant of probate as per the terms of the Will. The property was not used to produce assessable income after the deceased’s death. You and your sibling engaged a real estate in late 20YY to undertake the sale of the property. The property was widely advertised for sale using several sources. You entered into negotiations with an unrelated third party (the purchaser) for the sale of the property during late 20YY. These negotiations resulted in a contract of sale being executed in late 20YY for $XX. The purchaser paid a partial deposit of $XX in late 20YY. The residual deposit of $XX was paid in early 20ZZ. The purchaser required an extended settlement period. A settlement date of late 20ZZ was agreed upon by all parties. Settlement of the property occurred in late 20ZZ.

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