Private ruling: Capital Gains Tax – Deceased Estate – Extension of Time
Date of advice: 17 November 2017
Published: April 2018
Ruling period: Year ended 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 to October 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 October 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 QC17195 into the search bar at the top right of the page.

Relevant facts and circumstances: You and your siblings are the sole beneficiaries of your parent’s estate who passed away in mid 20XX. Your parent left you and your X siblings a house. A grant of probate was applied in late 20XX and granted in early 20XX. A surveyor was engaged in late 20XX. The survey was mainly completed in early 20XX although difficulties were experienced in finalising issues relating to it. Your sibling lived with your parent up until their death and you all agreed they would purchase the property from the estate. You signed the form to transfer your share of the property to your sibling in mid 20XX. Settlement for the property occurred in late 20XX.

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