Private ruling: CGT - deceased estate – two year discretion
Date of advice: 21 August 2017
Published: December 2017
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

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.

Relevant facts and circumstances: The deceased left a valid Will and probate was granted. One of the assets of the deceased estate was the deceased’s main residence (the property). The property was acquired by the deceased and their spouse prior to 20 September 1985. Due to divorce, the property was then transferred into the deceased’s name solely post 20 September 1985. The property has never been used to produce assessable income at any time during the ownership period or since death. The property was transferred to the executor/trustee. The deceased was a hoarder and once the property was cleared out it was found that there were some items that needed repair. The property was placed on the market after the repairs were completed and a real estate agent was engaged on an exclusive basis. The property has been contracted for sale and a settlement date has been set.

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