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Edited version of your private ruling
Authorisation Number: 5010082680604
Date of advice: 4 May 2022
Ruling
Subject: Commissioner's discretion - deceased estate
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 until settlement?
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 66057' on ato.gov.au
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
XX January 20XX
Relevant facts and circumstances
The deceased owned the property.
The land did not exceed 2 hectares.
The deceased acquired half the property as tenant in common with equal shares on XX XX 19XX.
The deceased acquired the second half of the property on XX XX 19XX.
The property is a pre-Capital Gains Tax (CGT) asset.
The property was the deceased's main residence.
The deceased passed away on X XX 19XX.
The deceased's will dated XX XX 19XX gave the child the right to reside for life during his lifetime.
The child passed away on XX XX 20XX thereby terminating the life estate in his favour.
Initiating on X XX 20XX, legal advice was sought regarding the interpretation of the will, the lack of residue clause and obtaining an order to administer the estate.
The Supreme Court granted the Order to Administer in early 20XX.
Legal Advice as to how the Will should be interpreted was received mid-20XX.
The beneficiaries agreed for the property to be sold and listed it for sale in late 20XX.
The sale contract for the property was signed on XX XX 20XX and Settled on XX XX 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)