Private ruling: Capital gains tax and deceased estate
Date of advice: 3 August 2018
Published: September 2018
Ruling period: 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? | 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 circa 19XX as the sole owner and this became the deceased’s main residence. The deceased did not own any other property and the dwelling did not produce income at any time. The deceased passed away in 20XX and left a Will. Probate was granted 20XX. A specific instruction was included in the deceased’s Will, allowing a beneficiary the right to occupy the dwelling from the date of death for a period of X months, rent free. The trustee was unable to attend to the deceased’s estate due to unforeseen circumstances. The property was sold with an extended settlement date to 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).