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This edited version has been archived due to the length of time since original publication.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: 1051395993586

Date of advice: 10 July 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) in relation to the dwelling on the property and allow an extension of time until XX/XX/ XXXX?

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 XX/XX/XXXX. 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:

Financial year ended 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

The deceased acquired the property after 20 September 1985.

The deceased lived at the property as their main residence until their death on XX/XX/XXXX.

Administration of the deceased’s estate was delayed due to the following:

    ● The executor had difficulty in locating important documents relevant to the administration of the deceased’s estate due to the hoarding of documents and paperwork by the deceased

    ● After the deceased’s date of death, the executor became extremely ill which made it difficult for them to perform their duties as executor in a timely manner

Following the resolution and management of the above, the property was listed for sale and sold at auction.

The buyer requested an extension of the date of settlement to XX/XX/XXXX due to cash flow difficulties. The property was settled on XX/XX/XXXX.

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 118-195