Private ruling: CGT - Deceased Estate 2 year exemption
Date of advice: 6 November 2017
Published: April 2018
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

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? | 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. Further information on the relevant factors and inheriting a dwelling generally can be found on your website ato.gov.au by entering Quick Code QC52250 into the search bar on the top right of the page.

Relevant facts and circumstances: The deceased property was purchased Pre-CGT. The property was used as the deceased main residence and no income was derived from it. The deceased resided in the property up until her date of death. The property’s land size is less than two hectares. After the deceased passed aw ay the property remained vacant. In accordance to the deceased Will, her beneficiaries inherited the property. The estate was managed by the State Trustee and Guardian. There were delays that were outside their control and caused by the State Trustee and Guardian. The title of the property was transferred to the beneficiaries, a length of time after the deceased death. Once prepared the property was sold promptly.

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