Private ruling: Capital gains tax – deceased estate – Commissioner’s discretion
Date of advice: 30 August 2018
Published: October 2018
Ruling period: 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) in relation to the dwelling, and the land around the dwelling including the land on which it stands up to a maximum of two hectares, and allow an extension of time until xx xxx xxxx? | 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: You inherited the property located on the death of your parents. Your parents died within two months of each other. Your father passed on xx xxx xxxx Your mother passed on xx xxx xxxx. Your parent had inherited the property from their parents and the property was their main residence until their date of death. Your father had transferred the property to joint ownership with your mother (his spouse) on xx xxx xxxx. This property was your parent’s main residence. Under the terms of the Will the property was left to yourself and two others with a condition that if you did not want to keep the property it was to be offered to xxxx to purchase at market value. The Will did not stipulate a time frame but had also left other assets to xxxx and provision for xxx to pay to xxxx a cash payment within xxxx of the date of death. Xxxx declined to purchase the property at market value and it was put onto the market on x xxx xxxx. Due to the slow market the property did not sell until a contract was secured on the property on xx xxx xxxxx with settlement occurring on xx xxx xxxx.

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 | Income Tax Assessment Act 1997 subsection 118-195(1)