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Edited version of your written advice
Authorisation Number: 1051497658513
Date of advice: 03 April 2019
Ruling
Subject: Capital gains tax – deceased estate – Commissioner’s discretion to extend the two year period to dispose of an inherited dwelling
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?
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 2019
Year ending 30 June 2018
The scheme commences on:
1 July 2017
Relevant facts and circumstances
The deceased acquired a 50% interest in a property (the dwelling).
The deceased’s sibling owned the other 50% interest and resided in the dwelling.
The dwelling was the deceased’s main residence.
The dwelling was not used to earn assessable income.
Probate was granted XX months after the deceased’s death.
The deceased’s partner was the executor of the estate.
The sale of the dwelling was prolonged as the deceased’s sibling was not co-operating with having the dwelling listed and was then being difficult when negotiating a price.
The executor threatened proceedings to have trustees for sale appointed and took steps to initiate this process.
The dwelling was sold and settlement occurred two years and two months after the deceased’s death.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 subsection 118-130(3)
Income Tax Assessment Act 1997 section 118-195