Private ruling: Capital Gains Tax for Deceased Estates- Main Residence Exemption.
Date of advice: 22 February 2019
Published: May 2019
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the 2 year period until 16 May 2018? | 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 16 May 2018. 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: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. ● The deceased purchased the property in 19XX. ● The property is less than 2 hectares in size. ● The deceased used the property as their main residence for the entire ownership period. ● The deceased passed away in 20YY. ● The deceased nominated X directors of a law firm as the trustee of the estate. ● The deceased provided the right of occupancy for their partner to reside in the property. ● The deceased’s partner lived and used the property as their main residence. ● Between xx 200X and xx 200X, X directors of the law firm renounced their position. ● In xx 20ZZ the deceased’s partner passed away. ● Between xx 20XY and xx 20XY, the remaining directors of the law firm renounced their position. ● In xx 20XY, the deceased’s grandchild was granted Letters of Administration. ● In xx 20XY the property was sold. ● In xx 20XX the property settled. ● At no point was the property used for income producing acti vities.

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