Private ruling: CGT two year - extension of time - Commissioners discretion
Date of advice: 19 December 2018
Published: April 2019
Ruling period: Period ending 30 June 201Z
Date scheme commenced: 1 July 201Y

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 the relevant facts, the Commissioner is able to apply his discretion under subsection 118-195(1) of the ITAA 1997 and allow an extension to the two year time limit to the date of settlement of the sale of the property.

Relevant facts and circumstances: The deceased lived in a duplex property. The deceased purchased the property in early 1996. The deceased lived in the property until death. You were appointed executor of the will in 201X when the property owner died. A family member placed a caveat on the property that prevented probate until the middle of 201X. You commenced to sell the property after probate had been granted. You had difficulty selling the property, despite extensive attempts to do so, including multiple price reductions and an unsuccessful auction. The house was sold late 201Y. Settlement date was January 201Z. Nobody moved into the property after the death of the deceased. The property was not used at any time to produce income. The property in less than two hectares in size.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 118-130(3). | Income Tax Assessment Act 1997 section 118-195. | Income Tax Assessment Act 1997 subsection 118-195(1).