Private ruling: Capital gains tax – deceased estate
Date of advice: 1 June 2018
Published: August 2018
Ruling period: Year ending 30 June 201x
Date scheme commenced: 1 July 201x

Ruling: Q1: Can you disregard the capital gain made on disposal of the property under section 118-195 of the Income Tax Assessment Act 1997 ? | A1: Yes Having considered your circumstances and the relevant factors, the Commissioner confirms that under subsection 118-195(1) of the ITAA 1997, the executor (or beneficiary) will be entitled to a full main residence exemption. Further information on the relevant factors and inheriting a dwelling generally can be found on our website ato.gov.au

Relevant facts and circumstances: The deceased passed away. The property was acquired by the deceased on prior to 20 September 1985. The deceased used the property as their main residence for the entire ownership period. The property was never used for income producing purposes. The property was left in equal shares to the beneficiaries. Prior to the death of the deceased, one beneficiary was living in the property. Following the death, the beneficiary continued to live in the property until their death. Probate was granted on xx/xx/19xx. The other executor of the Estate was unable to take possession of the property after the death of the deceased as the second executor (a beneficiary) was living in this property. Transfer of legal title to the beneficaries as administrators for the Estate on xx/xx/201x. The first executor/beneficiary appointed trustee for sale of the Property by the Supreme Court on xx/xx/201x. Property sold by public auction on xx/xx/201x.

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