| Disclaimer This edited version has been archived due to the length of time since original publication.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: 1051295279701
Disclaimer
You cannot rely on this edited version in your tax affairs. You can only rely on the advice that we have given to you or to someone acting on your behalf.
The advice in the Register has been edited and may not contain all the factual details relevant to each decision. Do not use the Register to predict ATO policy or decisions.
Date of advice: 14 October 2017
Ruling
Question
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?
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. Further information on the relevant factors and inheriting a dwelling generally can be found on our website ato.gov.au and entering Quick Code QC52250 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
The property was a family home owned by Spouse A and Spouse B from 19XX. They divorced and the property was moved from joint tenancy to tenants in common. Following the death of Spouse B in late 19XX 50% of their 50% ownership interest was transferred to Spouse A and their remaining 25% ownership interest of the property was transferred to Child A.
Child A suffered a medical condition from birth and continued to share the property with their parent, Spouse A, in an inter-dependent relationship.
Child A passed away in early-mid 20XX and their Will left their 25% interest in the property to their relative, to be held on trust until they attained 30 years of age.
Spouse A continued to live in the property as their main residence until they passed away in late 20XX. Spouse A’s Will provided for their 75% interest in the property to be transferred to their relative (being the same beneficiary as named in Child A’s Will), to be held on trust pending their attaining 30 years of age.
Spouse A’s Will was challenged by Child B on the basis that no provision was made for them in the Will. Upon settlement of this claim, the executor was able to list the property for sale and it was sold by contract dated early 20XX with settlement in mid 20XX.
Child A’s 25% interest was not sold within two years of their death.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195
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).
