Private ruling: Capital gains tax - deceased estate – Commissioner’s decision to extend the two year period
Date of advice: 7 June 2017
Published: October 2017
Ruling period: Year ending 30 June 2017.
Date scheme commenced: 1 July 2016.

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? | 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 to the requested date. Further information on the relevant factors and inheriting a dwelling generally can be found on our website https://www.ato.gov.au and entering Quick Code QC 17195 into the search bar at the top right of the page.

Relevant facts and circumstances: The deceased owned a property which was his/her main residence. The deceased left a will appointing two executors of his/her estate. The executors received a Grant of Probate on XX/XX/XX, at which time the property was valued at $XX. Executor A moved into the property against the wishes of executor B. Executor B brought a court action against executor A. Orders were made on removing executor A as an executor of the estate and evicting him/her from the property. Executor B then sold the property for $XX.

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