Private ruling: Capital Gains Tax and the Commissioners discretion
Date of advice: 6 September 2018
Published: October 2018
Ruling period: Year ended 30 June 2017
Date scheme commenced: 1 July 2016

Ruling: Q1: Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the dwelling and disregard the capital gain or loss you make on the disposal? | 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: Probate of the deceased’s will was granted to the executors, shortly after their passing. One of the assets of the deceased estate was the deceased’s main residence, a post capital gains tax (CGT) asset. The deceased did not treat any other property as their main residence during their ownership period and the property had not been used to produce assessable income in this period. The main residence was located within a managed housing community. Since the deceased’s passing, the executors raised multiple claims against the management/operators, which were referred to an administrative tribunal. The parties agreed on a full and final settlement by payment to the executors to buy back the property. The property was vacant from the time of the deceased’s passing to the time of settlement.

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