Private ruling: Main residence exemption
Date of advice: 10 July 2018
Published: September 2018
Ruling period: Year ending 30 June 20xx
Date scheme commenced: 1 July 20xx

Ruling: Q1: 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? | 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. Further information on the relevant factors and inheriting a dwelling generally can be found on our website ato.gov.au and entering Quick Code QC17195 into the search bar at the top right of the page.

Relevant facts and circumstances: (The deceased) passed away in March 20xx. (The deceased) left you and your sibling their home which was their main residence until their death. Probate was granted in July 20xx. Your sibling who suffers from depression lived with your parent for many years and continued to live in their residence after their death. Not wanting to exacerbate your sibling’s condition refrained from pressuring them to move out, until they were ready. Contracts were signed in March 20xx and final settlement was in April 20xx.

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