Commissioner may extend the two-year period
A trustee or beneficiary of a deceased estate may apply to the Commissioner to grant an extension of the two-year period, where the capital gains tax (CGT) event happens in the 2008–09 income year or later income years. Generally, the Commissioner would exercise the discretion in situations where the delay is due to circumstances that are outside of the control of the beneficiary or trustee, for example:
- the ownership of a dwelling or a will is challenged
- the complexity of a deceased estate delays the completion of administration of the estate
- a trustee or beneficiary is unable to attend to the deceased estate due to unforeseen or serious personal circumstances arising during the two-year period (for example, the taxpayer or a family member has a severe illness or injury)
- settlement of a contract of sale over the dwelling is unexpectedly delayed or falls through for circumstances outside the beneficiary or trustee’s control.
These examples are not exhaustive.
In exercising the discretion the Commissioner will also take into account whether and to what extent the dwelling is used to produce assessable income and for how long the trustee or beneficiary held the ownership interest in the dwelling.
For help applying this to your own situation, phone 13 28 61.
If you inherit a dwelling, or part-ownership of a dwelling, from a deceased person, and later dispose of it, consider capital gains tax rules that may apply.