| Disclaimer This edited version has been archived due to the length of time since original publication.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: 1051492541091
Date of advice: 26 March 2019
Ruling
Subject: Capital gains tax – deceased estate – Commissioner’s discretion to extend the two year period – main residence exemption
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 until settlement?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time. Further information about this discretion can be found by searching 'QC 52250' on ato.gov.au.
This ruling applies for the following period:
Year ending 30 June 2018
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased passed away in 20XX.
The deceased acquired a property prior to 20 September 1985 and elected it as their principle place of residence along with their spouse until their death.
The deceased had a will. The whole estate was left to the deceased two children, in equal shares.
Probate was granted in April 20XX.
The property was mostly vacant and did not produce any income from the date of death until the date of sale.
The settlement of the property was delayed because the purchasers experienced delays in obtaining the loan to purchase the property.
This prevented the dwelling being sold within two years from the deceased’s death.
The dwelling was sold in 2017.
Settlement occurred in 2017.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 104-10,
Income Tax Assessment Act 1997 section 118-195
Income Tax Assessment Act 1997 subsection 118-195(1)