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This edited version has been archived due to the length of time since original publication.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.

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Edited version of your written advice

Authorisation Number: 1051286833171

Date of advice: 27 September 2017

Ruling

Subject: Capital Gains Tax - Deceased Estate - Two Year Extension

Question

Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income TaxAssessment Act 1997 (ITAA 1997) and allow an extension of time to the two year period to XX July 20XX?

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 XX July 20XX.

Further information on the relevant factors, and inheriting a dwelling generally, can be found on our website ato.gov.au by entering Quick Code QC52250 into the search bar at the top right of the page.

This ruling applies for the following period:

The scheme commences on:

1 July 2017

Relevant facts and circumstances

The deceased passed away in July 20XX.

The deceased and their late spouse owned two properties together.

Both properties were purchased prior to 20 September 1985.

There were three beneficiaries of the deceased’s Will.

Probate of the Will was granted in March 20XX.

When the deceased’s Estate was first established, there were numerous disputes between the beneficiaries in regards to how the assets of the Estate were to be dispersed to each beneficiary.

At the time of the dispute between the beneficiaries, one of the beneficiaries was suffering from multiple medical conditions.

Due to the beneficiary suffering from the medical conditions, the beneficiary was advised by a medical practitioner not to travel or to deal with legal matters relating to the Estate unless they were completely able to focus and comprehend the consequences of what was occurring. The beneficiary resided in another state and as a result of not being able to travel, the beneficiary was unable to travel for meetings relating to resolving the dispute of the Estate.

Both properties have now been sold with settlement occurring in July 20XX.

Relevant legislative provisions

Income Tax Assessment Act 1997 Subsection 118-195(1).

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