Private ruling: Capital Gains Tax - Commissioner's discretion to extend the two year period
Date of advice: 5 August 2017
Published: November 2017
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

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 until August 20XX. Further information on the relevant factors, and inheriting a dwelling generally, can be found on our website ato.gov.au by entering Quick Code QC17195 into the search bar at the top right of the page.

Relevant facts and circumstances: Your parent passed away in June 20XX. You and your sibling were left your parent’s main residence as beneficiaries of their Will. Your parent’s Will was not clear regarding the transfer of ownership of their main residence. The Will was hand written and included assets and items that no longer existed. Under the Will, one beneficiary was to receive the property on the condition that other monies had been paid back, however this did not happen. Due to this the Will was contested and an agreement was only settled upon in 20XX. The property has now been sold, with the settlement date being in August 20XX.

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