Private ruling: Capital gains tax deceased estate - two year extension
Date of advice: 27 September 2017
Published: February 2018
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 to XX July 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 XX July 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: The deceased passed away in March 20XX. The deceased and their late spouse owned two properties together. The deceased also separately owned a property. All three properties were purchased prior to 20 September 1985. There were three beneficiaries of the deceased’s Will. Probate of the Will was granted in August 20XX. When the deceased’s Estate was first established, there were numerous disputes between the beneficiaries in regards to how the assets of the Estate were to be dispersed to each beneficiary. At the time of the dispute between the beneficiaries, one of the beneficiaries was suffering from multiple medical conditions. Due to the beneficiary suffering from the medical conditions, the beneficiary was advised by a medical practitioner not to travel or to deal with legal matters relating to the Estate unless they were completely able to focus and comprehend the consequences of what was occurring. The beneficiary resided in another state and as a result of not being able to travel, the beneficiary was unable to travel for meetings relating to resolving the dispute of the Estate. All three properties have now been sold with settlement occurring in July 20XX.

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