Private ruling: Capital Gains Tax – deceased estate – extension of time
Date of advice: 3 October 2017
Published: February 2018
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 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 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 deceased passed away in December 20XX. The deceased held a property (the property) which was acquired prior to 20 September 1985. The property was the deceased’s main residence. The deceased did not have a Will and in May 20XX, letters of administration were granted to the deceased’s only living relative. The property was transferred to the deceased’s relative in June 20XX. The decision was challenged by an individual and a caveat was lodged in September 20XX. The property placed with a real estate agent and was available for rent from November 20XX and the income was declared in a trust tax return. Ongoing maintenance and the replacement of items occurred during the time the property was rented. The caveat was released due to the Supreme Court decision in November 20XX. A new lease agreement was signed prior to the court decision in November 20XX allowing the property to be rented until June 20XX. The property was listed for sale in June 20XX and sold with no prior offers to purchase the property made. The settlement of the property was in November 20XX.

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