Private ruling: Deceased estate and the capital gains tax (CGT) main residence exemption
Date of advice: 10 October 2017
Published: February 2018
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion in section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the main residence exemption to 20XX? | 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 20XX. The period that the Deceased was absent from their main residence and it was used to produce assessable income before their passing was less than 6 years in satisfaction of section 118-145 of the ITAA 1997. Further information on the relevant factors and inheriting a dwelling generally can be found on our website ato.gov.au and entering Quick Code QC52250 into the search bar at the top right of the page.

Relevant facts and circumstances: The Deceased passed on 20XX. The Deceased owned a property purchased after 20 September 1985 that they treated as their main residence before their passing. On 20XX the Deceased moved out of the property. The property was used to produce assessable income between 20XX and 20XX. Probate of the Deceased’s will was granted on 20XX. A challenge to the will was lodged in the Relevant Court, which settled on 20XX. The property was transferred into your name on 20XX. A contract for sale of the property was settled on 20XX, which is more than two years after the date of the Deceased’s passing.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 section 118-145