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Edited version of private advice
Authorisation Number: 1051652840060
Date of advice: 30 March 2020
Ruling
Subject: Capital gains tax
Question 1
Was the property acquired before 20 September 1985 by the deceased?
Answer
Yes. Based on the information provided and specific circumstances, the Commissioner considers that the property was acquired before 20 September 1985, when change of ownership would have occurred. Therefore the property is regarded as a pre capital gains tax asset.
Question 2
Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 and allow an extension of time to the two year period to xxxx?
Answer
Yes. Having considered the relevant circumstances, the Commissioner will exercise his discretion and extend the two year time limit to xxxx. The circumstances were outside your control with a complex estate causing the delay.
This ruling applies for the following period
Year ending 30 June 20XX
The scheme commenced on
1 July 20XX
Relevant facts
The deceased died on xxxx.
Entity A obtained a grant of Letters of Administration on xxxx.
The deceased was the registered owner of a property at the time of death.
The property was sold by entity A on xxxx.
Entity A obtained a copy of the transfer document from the relevant Titles Office.
The transfer document shows that the property was transferred into the deceased's name on xxxx.
Entity A contacted the deceased's family but was unable to provide any information that assisted. The deceased was estranged from their family around the time of the purchase.
Entity A contacted other authorities and were told that they do not have any records.
Entity A has attempted to make contact with the transferor/seller of the property several times, but no responses have been received. The seller was not a family member or related to the deceased.
Entity A has no information of the selling agent or who acted in the conveyancing process.
The property was not the deceased's main residence.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 118-195