Private ruling: Extension to the 2 year rule for the main residence exemption for deceased estates
Date of advice: 13 December 2018
Published: April 2019
Ruling period: Financial year ended 30 June 201C | Financial year ending 30 June 201D
Date scheme commenced: 1 July 201B

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 118-195(2)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time to the two year period to dispose of the property until the stated date? | 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 died in early 2012. Probate was obtained in 201A. The deceased acquired the main residence prior to 1985. Some of the deceased’s children occupied the main residence which was the main asset of the estate. The will did not provide a right to occupy the property. An application was lodged to replace the executor of the will and a new administrator was appointed. A Supreme Court order was obtained amending the will to provide a right to occupy the property f The children vacated the property, and the property was then sold and settled.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 118-195(2)(b)