Private ruling: Capital gains tax – deceased estate – Commissioner’s discretion to extend the two year period to dispose of an inherited dwelling
Date of advice: 8 March 2019
Published: June 2019
Ruling period: Year ending 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax 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 acquired a dwelling before 20 September 1985 (the property). The deceased passed away sometime after 20 September 1985 (the deceased). The executors of the Estate are two relatives of the deceased (the executors). The executors made an application to prove the will of the deceased and commenced the proceeding by way of ‘Originating Motion for Grant of Probate’. Probate was granted to the executors by the Supreme Court of XXXX on XX April 20XX. Pursuant to the Will of the deceased, the beneficiaries are to receive, as tenants in common in equal shares, the freehold Property. A dispute arose between the beneficiaries as to the distributions under the Will. The Property was sold and settlement occurred in 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 subsection 118-130(3) | Income Tax Assessment Act 1997 section 118-195