Private ruling: Deceased estate
Date of advice: 14 August 2018
Published: October 2018
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

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 for the property, to xx/xx/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 xx/xx/20xx. 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 purchased the property, before 20 September 1985. It was the deceased main residence the entire time they owned it and was not used to produce assessable income. The deceased died in mid 20XX. Probate was granted in early 20XX. The Estate had X beneficiaries with equal shares. There were delays in selling the property due to the property not attaining the reserve price set by the beneficiaries. The property was valued at $XXX in early 20XX. The property went to auction in early 20XX. The highest price received in the auction was $xxx, this was rejected by beneficiaries. An offer was received in mid 20XX of $XXX, however the offer was withdrawn. Further offer of $XXX and $XXX were also received but were rejected by the estate beneficiaries. The final offer of $XXX was accepted and the property was subsequently sold. The settlement date for the property was early 20XX

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