Private ruling: CGT-extension of time
Date of advice: 3 September 2018
Published: October 2018
Ruling period: Year ending 30 June 201D
Date scheme commenced: 1 July 201C

Ruling: Q1: Will the Commissioner exercise his discretion to extend the 2 year period under section 118-195 of the Income Tax Assessment Act 1997? | A1: Yes

Relevant facts and circumstances: The deceased died in the 201B income year. The property was purchased by the deceased in 198A. The property was the deceased’s main residence until their death. The property was less than 2 hectares. The property was not rented out prior to their death or after their death. The property was sold in the 201D income year. The delay in selling the property within the 2 year time period was due to a challenge to the will and subsequent court proceedings resulting in consent orders. The legal action relating to the family provision lasted 16 months. The property was placed on the market as soon as practicable after the occupancy matters were resolved and sold within 3-4 months of it being placed on the market.

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

Reasons for decision: Summary: 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 the relevant date in 201D. Further information on the relevant factors and inheriting a dwelling generally can be found on our website ato.gov.au and entering Quick Code QC52250 into the search bar at the top right of the page.