Private ruling: Extension of time to the two year exemption from capital gains tax for a deceased’s main residence.
Date of advice: 15 February 2019
Published: May 2019
Ruling period: 30 June XXXX
Date scheme commenced: XX November XXXX.

Ruling: Q1: Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the dwelling and disregard the capital gain or loss you make on the disposal? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time. Further information about this discretion can be found by searching 'QC 52250' on ato.gov.au

Relevant facts and circumstances: The property was the main residence of the deceased. This property was never used for investment purposes. The will states two the Executors of the will. One of the executor’s was permitted to reside in the property as long as they required and then the property was left to the executor’s children to reside in as tenants in common in equal shares. You were offered a private offer on the property. After considering the offer you decided to sell. Renting the property was not financially viable due to health issues. The distance between the property and your family home was too far for you to consider relocating. The settlement of the property was to occur before the end of the two year period. Due to an error on the purchaser’s documentation the settlement was delayed. You disposed of your ownership interest after two years and one day.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 115-A | Income Tax Assessment Act 1997 section 102-20 | Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 section 104-10