Private ruling: Deceased Estate Main Residence - Commissioners Discretion to extend time period
Date of advice: 14 June 2017
Published: October 2017
Ruling period: Year ended 30 June 2017.
Date scheme commenced: 1 July 2016.

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 until x xxx xxxxx? | 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 x xxxx xxxx. Further information on the relevant factors and inheriting a dwelling generally can be found on our website https://www.ato.gov.au and entering Quick Code QC17195 into the search bar at the top right of the page.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. In 20XX you inherited a 50 % interest of a property. The property had been purchased as Joint Owners both owners had resided in the property until one owner’s death At the time of inheritance this property was the primary residence of the co-owner and they sustained a living from the land. As the property was their home and they also maintained a living from the land they were unwilling to sell the property. You offered an option to purchase your 50% ownership but the person was unable to do so due to their financial circumstances. Due to the property being the main residence of the co-owner both before and after your inheritance you were reluctant to force sales proceedings particularly in light of their medical condition. The co-owner suffers from medical condition and you did not want to cause them anxiety or stress which could result in worsening their medical condition. Finally due to deteriorating medical health it was agreed to sell the property in xxxx The purchasers of the property requested an extended settlement period making the final settlement date of the property xx xxx xxxx.

Relevant legislative provisions: 118-195(1) of the ITAA 1997 s118-195.