Private ruling: Commissioner's discretion to extend the 2 year main residence exemption period
Date of advice: 9 June 2017
Published: October 2017
Ruling period: Year ending 30 June 2017
Date scheme commenced: 1 July 2016

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA1997) in relation to the property and allow an extension of time? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion under subsection 118-195(1) of the ITAA 1997 and allow an extension of time until the 2016/17 financial year. Further information on the relevant factors and inheriting a dwelling generally can be found on our website https://www.ato.gov.au and entering Quick Code QC17195 into the search bar at the top right of the page.

Relevant facts and circumstances: The property was acquired after 20 September 1985 by the deceased. The property was used as her main residence from the date of acquisition. In 20XX the deceased passed away. While the deceased had left a Will it was advised the document was an informal one. This circumstance required an application to the Court for the document to be approved as the Last Will and Testament of the deceased. The informal will was contested by family members who also made inheritance style claims over the estate. In 20XX the Court made an Order declaring the formal Will of the deceased made in 20XX was the Last Will and Testament of the deceased. Subsequent to the order the executor under the will applied for grant of probate. Probate was granted in 20XX. The property was placed on the market for sale. A contract was signed and settlement occurred in 20XX.

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