Private ruling: Capital gains tax – deceased estate
Date of advice: 12 December 2017
Published: May 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 until settlement date? | 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: Your relatives purchased property in 19XX and this became their main residence. A relative of yours, having a disability also resided at this property. A relative of yours passed away first and then your other relative passed away in 20XX. As your disabled relative had resided in this main residence for all of their life, there were circumstances outside your control in finding alternative accommodation for your disabled relative. Alternate accommodation for your disabled relative was found, and once this happened the property was placed on the market and sold. Settlement occurred in 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).