Disclaimer This edited version has been archived due to the length of time since original publication.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: 1051297174636
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: 20 October 2017
Ruling
Subject: Exemption for Capital Gains Tax to extend beyond a two year period.
Question
Will the Commissioner exercise his discretion under subsection 118-195(1)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the two-year limit to disregard a capital gain on the sale of the deceased taxpayers main residence.
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 QC 52245 into the search bar at the top right of the page.
This ruling applies for the following period:
Year ended 2017
The scheme commences on:
1 July 2016
Relevant facts and circumstances
An individual passed away
The Property was jointly owned.
An individual inherited the property becoming the sole owner; it was the primary place of residence.
During administration of the Estate it was found that a page of the Will was missing, and only a copy of the relevant page was located.
Extensive enquiries were carried out to locate the last page of the Will including with the solicitors who prepare the Will of the deceased, the deceased’s home and the deceased’s financial institution. The enquiries were carried out by the deceased’s child and by the executors.
Executors of the Will were located in different countries.
The property has not been used as an income producing activity since the date of death.
Probate was applied for, due to the missing original last page of the Will the probate of the Will was requisitioned by the Supreme Court.
Probate was granted.
The property was listed for sale.
Settlement of the property occurred.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 subsection 118-130(3)
Income Tax Assessment Act 1997 section 118-195
Income Tax Assessment Act 1997 subsection 118-195(1)
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).