Private ruling: Capital gains tax – extension of time
Date of advice: 5 July 2017
Published: November 2017
Ruling period: 30 June 20ZZ
Date scheme commenced: 1 July 20YY

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 inheriting a dwelling generally can be found on our website ato.gov.au and entering Quick Code QC17195 into the search bar at the top right of the page.

Relevant facts and circumstances: The deceased passed away in 20XX and had acquired a dwelling (the property) before 20 September 1985. An executor and trustee were appointed to the deceased estate. A relative had resided in the dwelling since the 1980’s until it was sold in 20ZZ. Under the terms of the will, this relative did not have a right to occupy the dwelling for an extended time. In 20XX, a family dispute commenced and the will was contested in Court from 20XX until the matter was settled in 20YY. The property was subsequently placed on the market and settlement occurred in 20ZZ.

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).