Private ruling: Capital gains tax - deceased estate - Commissioner's discretion to extend the two year period
Date of advice: 7 June 2019
Published: July 2019
Ruling period: Year ended 30 June 1990 | Year ended 30 June 1991 | Year ended 30 June 1992 | Year ended 30 June 1993 | Year ended 30 June 1994 | Year ended 30 June 1995 | Year ended 30 June 1996 | Year ended 30 June 1997 | Year ended 30 June 1998 | Year ended 30 June 1999 | Year ended 30 June 2000 | Year ended 30 June 2001 | Year ended 30 June 2002 | Year ended 30 June 2003 | Year ended 30 June 2004 | Year ended 30 June 2005 | Year ended 30 June 2006 | Year ended 30 June 2007 | Year ended 30 June 2008 | Year ended 30 June 2009 | Year ended 30 June 2010 | Year ended 30 June 2011 | Year ended 30 June 2012 | Year ended 30 June 2013 | Year ended 30 June 2014 | Year ended 30 June 2015 | Year ended 30 June 2016 | Year ended 30 June 2017 | Year ended 30 June 2018 | Year ending 30 June 2019
Date scheme commenced: Mid March 19XX

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 settlement? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time. Further information about this discretion can be found by searching 'QC 52250' on ato.gov.au.

Relevant facts and circumstances: The deceased died in 19XX, leaving a will. Probate of the will was granted to child A of the deceased in 19XX. The deceased's will provided, a lifetime right of residency in the property for child B. The will subject to a right of residence provision for child B (the other of deceased's children), left the deceased's Estate to be divided as to one half share to child A and the remaining half share to be divided equally between the deceased grandchildren (the children of child B). All of the named beneficiaries survived the deceased by more than 30 days. The property was originally purchased in the names of the deceased and the deceased's spouse in 19XX. The spouse pre-deceased the deceased in 19XX. At the time of death, the deceased was registered proprietor of the property. The property size is less than 2 hectares. From the date of purchase until the date of death, the deceased resided at the property as their principal place of residence. Child B also resided in the property as their principal place of residence at the time of death of the deceased. The property remained registered to the deceased and their spouse as joint tenants until a departmental dealing in 20XX. The property was later sold in 20XX with a 60 day settlement period. Child B continued to reside in the property until 20XX, when they re-located into an Age Care Accommodation, as it was no longer practical to continue living in the property.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 subsection 118-195(1)