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Edited version of your written advice
Authorisation Number: 1051337555131
Date of advice: 20 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?
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 to dispose of the property. 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 2017
The scheme commences on
1 July 2016
Relevant facts and circumstances
(The deceased) died in 2014.
The deceased resided in the property which was their main residence at the time of their death.
The property was not rented during or after their death.
Some doubts had arisen as to the testamentary capacity of the deceased.
Due to cause of death the Public Trustee was required to prove that the deceased had capacity to make their last will.
The Public Trustee requested copies of the medical records for the deceased, as you were required to lodge the medical record with the court to substantiate your request for an order to administer (probate).
The Public Trustee received an order to administer in 2016.
The property was on the market for an auction, however you had an unsuccessful auction in September 2016.
The property was finally disposed of in May 2017.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 118-195