Private ruling: Capital gains tax – deceased estate – Commissioner’s discretion to extend the two year period – main residence exemption
Date of advice: 12 April 2018
Published: June 2018
Ruling period: Period ended 30 June 20XX
Date scheme commenced: 1 July 20XX

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. Further information on the relevant factors and inheriting a dwelling generally can be found on our website ato.gov.au and entering Quick Code QC 52250 into the search bar at the top right of the page.

Relevant facts and circumstances: A person died. They had a main residence; this property had not been used for the purpose of producing assessable income. Court action was instituted. An appeal was lodged. The appeal was dismissed, allowing a grant of probate to issue. Proceedings under the Inheritance (Family Provision) Act were initiated. Multiple Interlocutory applications were filed over a period of time. The proceeding was settled. An injunction restraining the executors from transferring the property was filed. This application was subsequently dismissed. The property was sold.

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