| Disclaimer This edited version has been archived due to the length of time since original publication.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: 1051632316412
Date of advice: 3 February 2020
Ruling
Subject: Capital gains tax - deceased estate - 2 year discretion
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 will allow an extension of time.
Further information about this discretion can be found by searching 'QC 52250' on ato.gov.au
This ruling applies for the following periods
Income year ending 30 June 2019
Income year ending 30 June 2020
The scheme commences on
1 July 2018.
Relevant facts and circumstances
The Deceased purchased the Property prior to 20 September 1985.
The Deceased and their spouse (Person A) resided at the Property.
The Property was the Deceased's main residence until they passed away.
The Deceased's Will made provisions for:
· Person A to have a right to occupy the Property during their lifetime, or as they desired, on the condition that they paid specified costs and outgoings in relation to the Property; and
· the Trustee to have the power to sell, or postpone the sale of the Property with the proceeds from the sale of the Property to be held on trust for Persons B, C, D and E (the Beneficiaries).
Person A continued to reside at the Property after the Deceased had passed away.
Probate on the Deceased's estate was granted shortly after the Deceased had passed away.
The Trustee entered into discussions with Persons C and D a number of months after probate was granted in relation to them disclaiming their share of the Property. A Deed of
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).
