Private ruling: Capital gains tax - main residence exemption - deceased estate
Date of advice: 22 April 2020
Published: June 2020
Ruling period: Year ending 30 June 2020
Date scheme commenced: 1 July 2019

Ruling: Q1: Will the Commissioner allow an extension of time to XX XXX XXXX for you to dispose of your ownership interests in the dwelling and disregard the capital gain you made on the disposal of the dwelling and adjacent land (up to 2 hectares including the land area immediately under the dwelling)? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner will allow an extension of time. Further information about the Commissioner's discretion can be found by searching 'QC 52250' on ato.gov.au

Relevant facts and circumstances: The deceased passed away on DD/MM/YYYY. The deceased acquired the property before 20 September 1985 jointly with his spouse. The property consisted of more than 2 hectares including the area immediately under the dwelling. The deceased's spouse passed away on or after 20 September 1985 and their share of the property passed to the deceased. The deceased lived in the property as their main residence. The property was never used for income producing purposes. The deceased left their ownership interest(s) in the dwelling to their surviving children. Probate of the estate was granted on DD/MM/YYYY and the property was transferred to the co-executors of the estate with the title held as joint tenants. The property was placed on the market in MM/YYYY. The property has now been sold with settlement occurring more than two years after the deceased's death for reasons outside your control.



Relevant legislative provision: Income Tax Assessment Act 1997 subsection 118-195(1)