Private ruling: CGT – deceased estate – two year
Date of advice: 5 December 2017
Published: April 2018
Ruling period: Year ending 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Will the Commissioner exercise his discretion under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the two year time period until XX November 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 XX November 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 deceased died on DDMMYY. The deceased acquired the property upon the death of their spouse on XX April 20XX. The property was the deceased’s main residence at the time of their death and has not been used to produce assessable income. Prior to the deceased’s death, family member, A moved into the property and took on the responsibility of caring for the deceased. A continued to live in the property after the deceased’s death. A was appointed as one of the Executors of the deceased estate. Following the deceased’s death, A’s ex-spouse, B was diagnosed with a terminal condition and A cared for B until their death on XX November 20XX. After B’s death, A’s spouse C was diagnosed with a terminal condition and A cared for C spouse until their death on XX March 20XX. The property was placed on the market on XX October 20XX. A contract for sale was entered into, however it fell through in July 20XX. A second contract for sale was signed on XX October 20XX, with settlement occurring on XX November 20XX.

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