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Edited version of private advice
Authorisation Number: 1051632316412
Date of advice: 3 February 2020
Ruling
Subject: Capital gains tax - deceased estate - 2 year discretion
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 periods
Income year ending 30 June 2019
Income year ending 30 June 2020
The scheme commences on
1 July 2018.
Relevant facts and circumstances
The Deceased purchased the Property prior to 20 September 1985.
The Deceased and their spouse (Person A) resided at the Property.
The Property was the Deceased's main residence until they passed away.
The Deceased's Will made provisions for:
· Person A to have a right to occupy the Property during their lifetime, or as they desired, on the condition that they paid specified costs and outgoings in relation to the Property; and
· the Trustee to have the power to sell, or postpone the sale of the Property with the proceeds from the sale of the Property to be held on trust for Persons B, C, D and E (the Beneficiaries).
Person A continued to reside at the Property after the Deceased had passed away.
Probate on the Deceased's estate was granted shortly after the Deceased had passed away.
The Trustee entered into discussions with Persons C and D a number of months after probate was granted in relation to them disclaiming their share of the Property. A Deed of