Private ruling: Capital gains tax – deceased estate (two year discretion)
Date of advice: 27 June 2018
Published: September 2018
Ruling period: 30 June 2018
Date scheme commenced: 1 June 2017

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the two year period? | A1: Yes. In this case, the complexities that arose in regards to finalising the estate were attributed to the delays in relation to the completion of the administration of the estate. Having considered the circumstances and the factors outlined below, 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 deceased passed away in XXXX. The property was acquired in XXXX. The deceased used the property as their main residence for the entire ownership period. The property was never used for income producing purposes. Due to the deceased passing away intestate you were required to apply for Letters of Administration. You were granted probate and were appointed as the Administrator of the estate. On XXXX the property was transferred to you. After clearing the property ready for sale you commenced the process to put the property on the market. The property sold on XXXX.

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