| Disclaimer This edited version has been archived due to the length of time since original publication.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 your written advice
Authorisation Number: 1051380839375
Date of advice: 12 June 2018
Ruling
Subject: Income tax – deceased estate – pre-CGT property
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 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 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 QC52250 into the search bar at the top right of the page.
This ruling applies for the following period
Year ending 30 June 20xx
The scheme commenced on
1 July 20xx
Relevant facts and circumstances
The deceased owned a property that was purchased prior to 1985.
The property was used as his main residence until his date of death.
There have been considerable delays with the solicitor dealing with the Estate since the death of the deceased.
The estate is complex with a total of X beneficiaries.
Two children of the deceased have continued to live in the property after the deceased’s death. One of the children (Individual A) has a disability and requires fill-time care from Individual B. The Will did not provide Individual A the right to occupy the property however an agreement between the family was that Individual A could remain at the property for as long as required due to their disability.
Individual A and Individual B lived at the property prior to the deceased’s death.
The property was sold in the 20XX financial year and settlement was received in early February.
Relevant legislative provisions
Income Tax Assessment Act subsection 118-195(1)