Private ruling: Pre-CGT asset, deceased estate, commissioner’s digression to extend the 2 year period
Date of advice: 20 April 2018
Published: July 2018
Ruling period: Year Ending 30 June 20XX
Date scheme commenced: XX May 20XX

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 May 20XX? | 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 May 20XX. 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: The Deceased purchased The Property prior to 20 September 1985. The Deceased resided at the Property until they moved into an Aged Care facility in 20XX. The Deceased rented out the Property for the period November 20XX to September 20XX. The Deceased passed away on September 20XX. One of the Executor’s of the Will had a serious accident in January 20XX and was admitted to hospital for six months, then spent a further six months in rehabilitation. Probate was granted April 20XX. The Estate comprised of numerous assets, which increased the complexity of finalising the Estate and further delayed sale of the Property. While the Estate was being finalised, the Executors continued to use the Property to produce assessable income until October 20XX. The Property was sold at auction on February 20XX and settlement occurred on May 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-195