| Disclaimer This edited version has been archived due to the length of time since original publication.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 private advice
Authorisation Number: 1051572651154
Date of advice: 28 August 2019
Ruling
Subject: Deceased estate two-year discretion
Question
Will the Commissioner exercise the 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 the circumstances and the relevant factors the Commissioner will apply the discretion under subsection 118-195(1) of the ITAA 1997 and allow a short extension of time.
This ruling applies for the following periods:
Year ending 30 June 20XX
Relevant facts and circumstances
The deceased passed away more than XX years ago.
The deceased owned a property. The dwelling at the property was their main residence at the time of their passing. The dwelling was not used to derive assessable income and is on land that is less than two hectares in size.
The deceased's last will, appointed Person A as executor and trustee of the will.
Probate was granted a number of months after the deceased's death.
Under the will, Person A was to receive the dwelling and Person A planned to move in; however was this did not occur due to extreme personal circumstances.
The property was subsequently listed for sale.
Due to the downturn in the market, the sale price was reduced a number of times in order to achieve a sale.
There have been no improvements made to the property.
The dwelling was sold and settled just a few months after the two year period had ended.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subdivision 115-A
Income Tax Assessment Act 1997 Section 102-20
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
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).
