Private ruling: Capital Gains Tax - deceased estate (2 year discretion)
Date of advice: 22 August 2017
Published: December 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 extend the 2 year period until XXXX? | A1: Yes.

Relevant facts and circumstances: The deceased passed away. The property was acquired by the deceased in XXXX. The deceased used the property as their main residence for the entire ownership period. The property was never used for income producing purposes. Due to delays with the completion of the estate the property was not sold within 2 years of the deceased’s date of death. Once the matters were finalised with the estate the property was transferred and on XXXX commencement of the process was started to put the property on the market. A contract was signed and the property settled.

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

Reasons for decision: Summary: In this case the complexities that arose in regards to finalising the estate were attributed to the delays in relation to the completion of the administration of the estate. Having considered the circumstances and the factors outlined above, the Commissioner is able to apply his discretion under subsection 118-195(1) of the ITAA 1997 and allow an extension of time until XXXX.