Private ruling: Capital gains tax - deceased estate
Date of advice: 15 October 2020
Published: November 2020
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 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 30 April 20XX? | A1: Yes. Having considered the circumstances and the relevant factors, the Commissioner will allow an extension of time for the disposal of the property. Further information about this discretion can be found by searching 'QC 52250' on ato.gov.au.

Relevant facts and circumstances: The deceased acquired a block of land pre capital gains tax (CGT) and built his home post CGT. The property was the deceased's main residence and not used for income producing activities before his death. The deceased's children were all executors and beneficiaries of his estate. The property was sold on 20XX The complexity of the deceased estate delayed the completion of the administration of the estate.

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