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?
No. This ruling applies for the following periods: Year ended 30 June 20XX Year ending 30 June 20XX The scheme commences on: XX March 2018
The property is not a pre-CGT asset. The property does not exceed 2 hectares. The property was lived in and owned by XX. The deceased passed away on XX XX 20XX. The property was also the main residence for you and your children. You had lived with the deceased for XX years. Probate was granted on X XX 20XX. In accordance with the will, the property was transferred to you and your sibling late 20XX. The 4 beneficiaries agreed that you could remain in the property for a further 2 years. This was to minimise disruption for your children and allow time to arrange accommodation going forward. You ceased living in the property early 20XX. The property was sold by you and your sibling as executors of the estate. The property was settled on XX XX 20XX.
Income Tax Assessment Act 1997 Section 118-195 Detailed reasoning Subsection 118-195 (1) of the ITAA 1997 disregards a capital gain or loss that is made from a CGT event regarding a dwelling or your ownership interest if: • The dwelling was, from the deceased's death until your ownership interest ends, the main residence of one or more of: The spouse of the deceased immediately before death (except a spouse who was living permanently separately and apart from the deceased); or An individual who had a right to occupy the dwelling under the deceased's will; or If the CGT event was brought about by the individual to whom the ownership interest passed as a beneficiary -- that individual. None of these considerations have been met in the circumstances. There is no spouse