Private ruling: Capital gains tax – deceased estate
Date of advice: 7 December 2017
Published: April 2018
Ruling period: 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Will the Commissioner exercise the discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time until settlement date? | 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 settlement date. Further information on the relevant factors and inherited dwellings generally can be found on our website ato.gov.au and entering Quick Code QC52246 into the search bar at the top right of the page.

Relevant facts and circumstances: Your relative purchased a house in 19XX and this dwelling was their main residence. Your relative remarried in 19XX and they continued to reside in the dwelling as their main residence. Your relative became ill and was placed into a nursing home. Your relative passed away in 19XX and the spouse remained at the property until their date of death in 20XX. You were unaware of the spouse’s passing until 20XX. You then took all the necessary steps and employed the services of a lawyer to assist in finalising your relative’s estate. Orders from the Supreme Court were obtained in 20XX to grant administration of the estate. The property was sold and settlement occurred in 20XX.

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