| Disclaimer This edited version has been archived due to the length of time since original publication.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. |
Authorisation Number: 1051398664528
Date of advice: 16 July 2018
Ruling
Subject: Deceased estates
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 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 periods:
Year ended 30 June 2018
The scheme commences on:
1 July 2017
Relevant facts and circumstances
The property was purchased before 20 September 1985 by the deceased’s spouse.
The deceased and their spouse lived in property as their main residence.
In 19XX the deceased’s spouse passed away.
At this time the ownership of the property passed to the deceased.
In early 20XX the deceased was placed in to hospital due to serious health issues that meant they could no longer live alone.
The deceased continued to use the property as their main residence until they passed in late 20XX.
Prior to the deceased’s death the future administrator of the estate, child and carer of the deceased started to go through traumatic personal hardship.
This hardship continued after the deceased died and culminated in serious legal issues and family breakdown.
Much of their time from the deceased’s death was spent dealing with these serious issues which were demanding.
From mid 20XX to early 20ZZ the property was rented.
The property was completely managed by a real estate agent for the entire time until it was sold.
The probate process was commenced in late 20YY.
You were informed by a probate specialist that probate could be a complex a protracted matter.
After the first submission for probate in early 20YY the deceased’s will was rejected by the court due to an informal codicil attached to it.
The second submission for probate commenced in mid 20YY.
Probate was granted in mid 20YY.
The property was sold and settled in early 20ZZ.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 118-195