Private ruling: Capital gains tax and deceased estate
Date of advice: 30 May 2018
Published: August 2018
Ruling period: Year ending 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Will the Commissioner exercise the discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time until settlement date? | 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 settlement date. Further information on the relevant factors and inherited dwellings generally can be found on our website ato.gov.au and entering Quick Code QC52246 into the search bar at the top right of the page.

Relevant facts and circumstances: The deceased purchased property and this dwelling was their main residence up until their date of death in 20XX. This property was not used to produce income. The deceased was survived by relatives, who were named as beneficiaries and were bequeathed in the will. The will was challenged by relatives each having separate claims. Through the resolution of these claims it was required to determine the deceased’s health and testamentary capacity at the time the will was made. This took considerable time in having to obtain medical information. The dispute was resolved by the court in 20XX. Once the dispute was finalised the property was prepared for sale. Settlement occurred in 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10, | Income Tax Assessment Act 1997 section 118-195 and | Income Tax Assessment Act 1997 subsection 118-195(1)