Private ruling: CGT exemption for deceased estate
Date of advice: 3 July 2019
Published: September 2019
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner allow extensions of time under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) to 12 December 20XX for you to dispose of your ownership interest in property A and 8 September 20XX for you to dispose of your ownership interest in property B, and disregard the capital gains or losses you made on these disposals? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time. Further information about this discretion can be found by searching 'QC 52250' on ato.gov.au

Relevant facts and circumstances: The deceased acquired property A and property B, before 20 September 1985. These properties were investment properties and used to produce assessable income. No significant improvements were made to properties which may have created a new asset for CGT purposes after 20 September 1985. Late 20XX, the deceased's spouse died and their share in property B passed to the deceased as the surviving joint tenant. The deceased was the executor of their spouse's estate with probate being granted early 20XX. The deceased died mid 20XX before the estate of their spouse was fully administered. The deceased had two valid wills, and probate was granted to both wills by the court early 20XX. Due to the inconsistent and contradictory nature of these two wills, a court case arose to determine how the two separate and valid wills should be used to execute the Estate. The legal matters of this case, and the complications created by the deceased dying before their spouses estate could be fully administered, led to significant delays in executing the estate of the deceased. Judgement court was handed down early 20XX and detailed how the before mentioned properties should be treated under the conditions of the two wills, allowing properties disposals to commence. The settlement dates for each of the deceased properties were as follows: property A late 20XX, property B late 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 118-190 | Income Tax Assessment Act 1997 Section 118-195 | Income Tax Assessment Act 1997 Section 118-200