Private ruling: Deceased estate main residence exemption
Date of advice: 1 April 2020
Published: May 2020
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner allow an extension of time to 30 June 20XX for you to dispose of your ownership interest in the dwelling and disregard the capital gain you make on the disposal? | 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: The deceased purchased the property after 20 September 1985. The deceased lived there until they moved into nursing home just over X years prior to their passing in late 20XX. In late 20XX the property started to be used to produce assessable income. This was supposed to be to pay for the nursing home for the deceased however they passed away suddenly, but the contract had already been signed, so the tenants moved in anyway with the knowledge that the property was going to eventually be sold. Probate was granted in mid 20XX. The property was listed in late 20XX. In late 20XX the property was listed with another agent and listed at $XX. There was some interest, however, the bushfires fires started to impact the area and there were road closures, which cut off access to the property so no buyers could visit the property. The bushfires and road closures continued through the Christmas and New Year period and affected large portions of State ABC including the directly impacting the family of the deceased. During this time there was a buyer that was particularly interested in the property, but they were unable to come and see and property or sign a contract of sale. After most of the bushfires had subsided in the area and the roads reopened, the buyer came to the property. The contract was signed in early 20XX. The property is to be sold for $XX. The property is to be settled in early 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 118-195