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Edited version of your written advice
Authorisation Number: 1051241372439
Date of advice: 27 June 2017
Ruling
Subject: Capital gains tax – extending two year period
Question 1
Will the Commissioner exercise the discretion under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the two year time period until settlement date?
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 settlement date. 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 17195 into the search bar at the top right of the page.
This ruling applies for the following period:
30 June 20X5
The scheme commences on:
1 July 20X2
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
A dwelling was purchased in 19X1 as the main residence.
The dwelling did not produce income.
The deceased passed away in 20X2 and did not leave a will.
A legal dispute among the beneficiaries was lodged with a tribunal in 20X3.
Delays occurred in having an administrator appointed and this was eventually granted in 20X3.
As part of the legal dispute some funds were released in 20X4.
The legal dispute surrounding the remaining assets within the estate is ongoing and subsequently an application was filed in the Relevant Court in 20X4.
An agreement was reached between the beneficiaries and the property was put on the market in 20X5 and settled in 20X5.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10,
Income Tax Assessment Act 1997 section 118-195 and
Income Tax Assessment Act 1997 subsection 118-195(1).