Private ruling: Deceased estate - extension of time
Date of advice: 1 July 2019
Published: September 2019
Ruling period: Year ending 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Will the Commissioner exercise the discretion under subsection 118-195(1) of the Income 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 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 purchased a property prior to 20 September 1985 and resided in the property as their main residence until they passed away. The dwelling was not used for income producing purposes. The property was less than two hectares in size. The Public Trustee was named as the executor for the estate. The deceased's partner was granted a life tenant interest in the dwelling. Beneficiaries were named with entitlement to the dwelling after the life tenant's interest ends. Probate was subsequently granted. The deceased's partner passed away. Shortly thereafter, some of the remaining beneficiaries signed an agreement to sell the property. There were issues with contacting a beneficiary to sign the contract, delaying the sale of the property. Settlement occurred more than two years after the deceased's death.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 115-A | Income Tax Assessment Act 1997 Section 102-20 | Income Tax Assessment Act 1997 Section 118-195 | Income Tax Assessment Act 1997 Section 104-10 | Income Tax Assessment Act 1997 Subsection 118-195(1)