Private ruling: CGT – deceased estate – 2 year
Date of advice: 4 April 2019
Published: May 2019
Ruling period: Year ended 30 June 2019
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the two year period to XX September 20XX? | A1: Yes Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion under section 118-195 of the ITAA 1997 and allow an extension of time until xx xxxx 20XX. Further information on CGT exemptions for inherited dwellings can be found on our website, ato.gov.au by searching quick code QC52247.

Relevant facts and circumstances: The deceased died on XX XXXX 20XX. The deceased acquired the property on the death of her spouse after 20 September 1985. The property was the deceased’s main residence at the time of their death and has not been used to produce assessable income. In accordance with the terms of the deceased’s will, the property was transferred equally (as tenants in common) to A, B, C and D on XX XXXX 20XX. There was no provision in the deceased’s will allowing A, P, C or D the right to reside in the property. A has a disability and requires a full-time carer to attend to their daily living needs. B moved into the property in 19XX to assist the deceased care for A. B became A’s full-time carer after the deceased’s death. Following the deceased’s death, the decision was made by C, D, B and A to allow A and B to continue to reside in the property. A has lived at the property from birth until its disposal. B continued to reside at the property as A’s carer after the deceased’s death until its disposal. In XXXX 20XX, C, D B and A had a meeting to discuss C becoming A’s full-time carer and A moving into C’s house, allowing the property to be sold. C, D, B and A agreed to the changes in XXXX 20XX and the property was placed on the market for sale. The property was sold on XX July 20XX with settlement occurring XX September 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 118-195(1)