Private ruling: Deceased estate and the capital gains tax (CGT) main residence exemption
Date of advice: 3 October 2017
Published: February 2018
Ruling period: 1 July 2017
Date scheme commenced: 30 June 2018

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. 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 held a property that they acquired their ownership interest in after 20 September 1985. The property was their main residence up until their date of passing. The Executors entered into a contract of sale for the property with a third party on 20XX, which did not settle. The Executors entered into a contract of sale for the property with a third party on 20XX, which did not settle. The Executors entered into a contract of sale for the property which settled on 20XX.

Relevant legislative provisions: Income Tax Assessment Act1997 section 118-195.