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Edited version of private advice
Authorisation Number: 1051919183331
Date of advice: 9 November 2021
Ruling
Subject: CGT - deceased estate
Question
Will the Commissioner exercise the 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 for disposal of the property?
Answer
Yes. Having considered the circumstances and the relevant factors, the Commissioner is able to apply the discretion under subsection 118-195(1) of the ITAA 1997 and allow an extension of time. Further information about the discretion can be found on our website ato.gov.au and entering QC 66057 into the search bar at the top right of the page.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased passed away in 20XX.
The deceased was the sole owner of the property (the property).
The property was the deceased's principal residence.
Child A of the deceased was given life tenancy over the property and if the child was unable to remain in the house without full time care, the property was to be sold and proceeds divided in accordance with the residual estate.
The Public Trustee, acting on behalf of child A, challenged the terms of the Will seeking greater provision.
An affidavit was filed by the Public Trustee Solicitor on behalf of child A with the Court of that State.
Terms of settlement between Child A and the executors of the Will was signed to vary the distribution of the Will in 20yy.
Letters of Administration relating to the Will was granted in the same year.
The property was then sold and settled.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)