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This edited version has been archived due to the length of time since original publication.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: 1051332880959

Date of advice: 2 February 2018

Ruling

Subject: Capital gains tax

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 to 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 July 20XX. Further information on the relevant factors and inheriting a dwelling generally can be found on our website 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(s)

Year ended 30 June 20XX

The scheme commences on

1 July 20XX

Relevant facts and circumstances

Your parents both passed away in June 20XX. Whilst both were suffering medical illnesses, it was a shock to the families and the impact of losing both within a couple of days of each other, caused considerable stress and anxiety.

The short period between the deaths ultimately caused delays in finalisation of both estates.

The estates were already quite complex with the couple owning several properties, together with numerous share investments and other assets.

Delays were caused due to calculation of capital gains tax liabilities for three separate properties for three separate beneficiaries.

One estate was finalised in July 20XX.

The second estate was finalised in February 20XX.

The property was sold in July 20XX.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 118-195

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