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Edited version of private advice
Authorisation Number: 1051527716542
Date of advice: 7 June 2019
Ruling
Subject: Capital gains tax - deceased estate - Commissioner's discretion to extend the two year period
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 ended 30 June 1990
Year ended 30 June 1991
Year ended 30 June 1992
Year ended 30 June 1993
Year ended 30 June 1994
Year ended 30 June 1995
Year ended 30 June 1996
Year ended 30 June 1997
Year ended 30 June 1998
Year ended 30 June 1999
Year ended 30 June 2000
Year ended 30 June 2001
Year ended 30 June 2002
Year ended 30 June 2003
Year ended 30 June 2004
Year ended 30 June 2005
Year ended 30 June 2006
Year ended 30 June 2007
Year ended 30 June 2008
Year ended 30 June 2009
Year ended 30 June 2010
Year ended 30 June 2011
Year ended 30 June 2012
Year ended 30 June 2013
Year ended 30 June 2014
Year ended 30 June 2015
Year ended 30 June 2016
Year ended 30 June 2017
Year ended 30 June 2018
Year ending 30 June 2019
The scheme commences on:
Mid March 19XX
Relevant facts and circumstances
The deceased died in 19XX, leaving a will.
Probate of the will was granted to child A of the deceased in 19XX.
The deceased's will provided, a lifetime right of residency in the property for child B.
The will subject to a right of residence provision for child B (the other of deceased's children), left the deceased's Estate to be divided as to one half share to child A and the remaining half share to be divided equally between the deceased grandchildren (the children of child B). All of the named beneficiaries survived the deceased by more than 30 days. The property was originally purchased in the names of the deceased and the deceased's spouse in 19XX.
The spouse pre-deceased the deceased in 19XX.
At the time of death, the deceased was registered proprietor of the property. The property size is less than 2 hectares.
From the date of purchase until the date of death, the deceased resided at the property as their principal place of residence. Child B also resided in the property as their principal place of residence at the time of death of the deceased.
The property remained registered to the deceased and their spouse as joint tenants until a departmental dealing in 20XX.
The property was later sold in 20XX with a 60 day settlement period.
Child B continued to reside in the property until 20XX, when they re-located into an Age Care Accommodation, as it was no longer practical to continue living in the property.
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)