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Edited version of your written advice
Authorisation Number: 4120045896449
Date of advice: 9 March 2018
Ruling
Subject: Income tax - capital gains tax – deceased estate – exemption to 2 year rule – extension of time
Question
Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the time limit.
Answer
Yes
This ruling applies for the following period:
Period ending 30 June 2017
The scheme commences on:
1 July 2016
Relevant facts and circumstances
The deceased acquired the dwelling after 20 September 1985.
The deceased passed away in the 20XX financial year.
The deceased died intestate.
The Letters of administration were issued in the 20XX financial year.
Settlement for the sale of the dwelling occurred in the 20XX financial year.
The dwelling was not used to produce income between the date of death and the sale of the dwelling.
Relevant legislative provisions
Subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997)
Reasons for decision
Having considered the circumstances and the factors outlined above, 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 and entering Quick Code QC52250 into the search bar at the top right of the page.