Private ruling: Two year exemption from capital gains tax for a deceased main residence
Date of advice: 15 January 2019
Published: April 2019
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 30 August 20XX

Ruling: Q1: Will the Commissioner exercise his discretion under 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time to the two year period? | A1: 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 52250' on ato.gov.au

Relevant facts and circumstances: In 19XX the will was signed by the deceased, appointing two of the children executor’s of the will. The will stated the estate of both real and personal to be in equal shares between all children if one is to pass their share is to be equally apportioned between the other surviving children. The deceased had one main residence which was their home until spending a short period of time in care where they passed away. On the XX October 20XX one of the executor renounced all rights and title to the probate and executioner of the will due to personal reasons. Probate of the will was granted on the XX August XX to the other executor of the will. The previous executor to the will passed away in 20XX. The main residence was sold on the XX August 20XX for $XXX, XXX and settlement incurred within 3 weeks. The main residence was sold a short time after the two years from when the deceased passed away.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 115-A | Income Tax Assessment Act 1997 section 102-20 | Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 section 104-10