Private ruling: Exemption for Capital Gains Tax to extend beyond a two year period.
Date of advice: 20 October 2017
Published: March 2018
Ruling period: Year ended 2017
Date scheme commenced: 1 July 2016

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 118-195(1)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the two-year limit to disregard a capital gain on the sale of the deceased taxpayers main residence. | 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. Further information on the relevant factors and inheriting a dwelling generally can be found on our website ato.gov.au and entering Quick Code QC 52245 into the search bar at the top right of the page.

Relevant facts and circumstances: An individual passed away The Property was jointly owned. An individual inherited the property becoming the sole owner; it was the primary place of residence. During administration of the Estate it was found that a page of the Will was missing, and only a copy of the relevant page was located. Extensive enquiries were carried out to locate the last page of the Will including with the solicitors who prepare the Will of the deceased, the deceased’s home and the deceased’s financial institution. The enquiries were carried out by the deceased’s child and by the executors. Executors of the Will were located in different countries. The property has not been used as an income producing activity since the date of death. Probate was applied for, due to the missing original last page of the Will the probate of the Will was requisitioned by the Supreme Court. Probate was granted. The property was listed for sale. Settlement of the property occurred.

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)


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