Private ruling: Capital gains tax and a deceased estate
Date of advice: 25 January 2018
Published: June 2018
Ruling period: 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: A1: Yes Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion under subsection 152-80(3) of the ITAA 1997 and allow an extension of time, as the asset would have qualified for the small business CGT concessions if the deceased had disposed of the asset immediately before his date of death. Further information on the relevant factors and inheriting a dwelling generally can be found on our website ato.gov.au and entering Quick Code QC52250 into the search bar at the top right of the page.

Relevant facts and circumstances: You and your spouse purchased property in 20XX as joint owners and this became your main residence. The property includes rural land that is more than 2 hectares in size and you ran a business on the property from 20XX to 20XX. Your spouse became ill and some assets were sold in 20XX and the rural land was leased to relatives who ran their own businesses, which was not connected to you or your spouse. Your spouse (deceased) passed away in 20XX and the deceased’s interests devolved to you. The deceased had a will and the total of his assets at the time of their death did not exceed $6 million. You always intended to transfer the property to a relative since the deceased passed. Due to circumstances outside of your control you have endured unforeseen personal issues and this has led to the delay in transfer of ownership. You have advised this transaction will be completed and settled by 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 152-80.


Subject: Capital gains tax and a deceased estate: Will the Commissioner exercise the discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the two year time period?