Private ruling: CGT - deceased estate – two year discretion
Date of advice: 16 July 2018
Published: September 2018
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.

Relevant facts and circumstances: The granting of probate was delayed due to the deceased leaving an informal will. One of the assets of the deceased estate was the deceased’s main residence, a post capital gains tax (CGT) asset. The deceased did not treat any other property as their main residence during their ownership period. The property has never been used to produce assessable income at any time during the deceased’s ownership period or since death. The property title was transferred into the executors name shortly after probate was granted. The property was listed for sale and a contact was entered into shortly thereafter. Settlement has taken place.

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