Private ruling: Capital gains tax - deceased estate - Commissioner's discretion to extend the two year period - main residence exemption
Date of advice: 21 August 2019
Published: October 2019
Ruling period: 1 July 20XX to 30 June 20XX
Date scheme commenced: 1 January 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under 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 for up to two hectares of land with your dwelling under subsection 118-195(1) of the ITAA 1997 and 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 passed away more than two years ago. The deceased was the sole owner of a dwelling (the dwelling). The deceased had owned the dwelling until their date of death. The dwelling was their main residence at the time of passing. The dwelling is located on land that is more than two hectares. You were appointed as an executor under the deceased will. You acquired an interest in the dwelling under the will, in your individual capacity along with another beneficiary. During the course of the administration you were unable to attend to the deceased estate due to the death of a family member which impacted the administration of the estate. You sold your interest in the dwelling and settlement occurred just a few weeks after the end of the two year period. The dwelling was not used for income producing purposes from the date of the deceased's death until it was sold.

Relevant legislative provisions: Income Tax Assessment Act 1997 subdivision 115-A | Income Tax Assessment Act 1997 section 102-20 | Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 section 104-10