Private ruling: CGT – deceased estate – Commissioner’s discretion to extend the two year period
Date of advice: 30 April 2018
Published: August 2018
Ruling period: Year ending 20XX
Date scheme commenced: 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 until 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 20XX. 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 property was purchased in 20XX by the Deceased. The Deceased passed away in 20XX. The Deceased’s main residence (the property) was left to their children, child A, child B and child C. One of the children had been living in the house with the deceased. Although it was not stipulated in the Will, the Deceased had made it known verbally that due to child A’s ill health, the deceased would like them to continue to live in the property. The Deceased moved into a nursing home / palliative care in 20XX. After the Deceased passed away, child A intended to move out of the property and rent elsewhere. The Property had been altered in a way to make it accessible for the Deceased. The children all agreed that child A should continue to live at the Property rent free due to their illness. Child A moved all their belongings to the Property. Child A was suffering from a terminal condition and had to attend hospital multiple times a week. Child A passed away in 20XX. Child B and child C set about sorting through the Property and the belongings of the Deceased, child A and other relatives. Child B and child C could only attend to the house on weekends due to work and other commitments; this was made more challenging as child B lived some distance away. The Property required extensive work to be put to a saleable condition. This was intensified by the fact that child A had collected an unusually large amount of personal possessions.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 118-145 | Income Tax Assessment Act 1997 Section 118-195