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Edited version of your written advice
Authorisation Number: 4110048579823
Date of advice: 30 April 2018
Ruling
Subject: Capital gains tax - two year main residence extension.
Question
Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the 2 year period?
Answer
Yes
In this case, probate on the estate was delayed due to disputes and legal action on behalf of one of the beneficiaries. The executor experienced lengthy delays outside of their control. We accept that the executor made a genuine effort to administer the estate and sell the property.
Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion under subsection 118-195(1) of the ITAA 1997 and allow an extension of time. Further information on the relevant factors and inheriting a dwelling generally can be found on our website ato.gov.au
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
01 July 20XX
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
The deceased passed.
The property was acquired by the deceased post 20 September 1985.
The deceased used the property as their main residence for the entire ownership period.
The property was never used for income producing purposes.
Probate was granted.
The will was contested.
The claim was resolved.
The property sold.
The property settled.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)