Private ruling: Main residence exemption for capital gains tax on deceased estates
Date of advice: 20 January 2021
Published: March 2021
Ruling period: Year ended DD MM YYYY
Date scheme commenced: DD MM YYYY

Ruling: Q1: Will the Commissioner exercise the discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the two-year period? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply the discretion under subsection 118-195(1) of the ITAA 1997 and allow an extension of time until DD MM YYYY. Further information on the relevant factors and inheriting a dwelling can be found on our website ato.gov.au and entering Quick Code QC52250.

Relevant facts and circumstances: The Deceased acquired the property with their spouse as a joint tenant. The Deceased inherited the remaining ownership interest of the property, following the death their spouse. The Deceased passed away. A caveat against a Grant of Probate was lodged. The caveat against a Grant of Probate was withdrawn. A caveat against the Title of the Property was lodged. The Supreme Court issued the Grant of Probate. The caveat against the Title of the Property was withdrawn. The property was transferred to the executors of the Will. The property was listed for sale. A contract of sale (for the property) was entered. Settlement (of the property) occurred. The property had always been used as the main residence for the Deceased. The property was never used for income producing purposes.

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