| Disclaimer This edited version has been archived due to the length of time since original publication.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: 1051413693149
Date of advice: 9 August 2018
Ruling
Subject: Capital gains tax and a deceased estate
Question
Will the Commissioner exercise the discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time 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 inherited dwellings generally can be found on our website ato.gov.au and entering Quick Code QC52246 into the search bar at the top right of the page.
This ruling applies for the following period:
Year ending 30 June 2019
The scheme commences on:
1 July 2018
Relevant facts and circumstances
The deceased purchased property pre 20 September 1985 as joint owner and this became the deceased’s main residence.
The deceased did not own any other property and the dwelling did not produce income at any time.
The deceased acquired 100% sole ownership in 20XX and remained at the property as their main residence.
The property was also occupied by a deceased’s relative.
The deceased passed away 20XX and left a will.
Probate was granted to the executor in 20XX.
The relative vacated the property and the executor undertook repairs and maintenance to prepare the property for sale.
The property was listed for sale in 20XX and a contract of sale was executed on 20XX. Settlement was to be completed on 20XX.
Complications arose at this point as the property was encumbered by other parties and caveats were in force.
Due to these complications, settlement was extended and once the encumbrance and caveat resolved, settlement was completed in 20XX.
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).