| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1051237092013
Date of advice: 14 June 2017
Ruling
Subject: Deceased Estate Main Residence - Commissioners Discretion to extend time period
Question 1
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 until x xxx xxxxx?
Answer
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 x xxxx xxxx. Further information on the relevant factors and inheriting a dwelling generally can be found on our website https://www.ato.gov.au and entering Quick Code QC17195 into the search bar at the top right of the page.
This ruling applies for the following period
Year ended 30 June 2017.
The scheme commences on
1 July 2016.
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
In 20XX you inherited a 50 % interest of a property.
The property had been purchased as Joint Owners both owners had resided in the property until one owner’s death
At the time of inheritance this property was the primary residence of the co-owner and they sustained a living from the land. As the property was their home and they also maintained a living from the land they were unwilling to sell the property.
You offered an option to purchase your 50% ownership but the person was unable to do so due to their financial circumstances.
Due to the property being the main residence of the co-owner both before and after your inheritance you were reluctant to force sales proceedings particularly in light of their medical condition. The co-owner suffers from medical condition and you did not want to cause them anxiety or stress which could result in worsening their medical condition.
Finally due to deteriorating medical health it was agreed to sell the property in xxxx The purchasers of the property requested an extended settlement period making the final settlement date of the property xx xxx xxxx.
Relevant legislative provisions
118-195(1) of the ITAA 1997 s118-195.
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
