Private ruling: Main residence exemption
Date of advice: 10 July 2018
Published: September 2018
Ruling period: Year ending 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 allow an extension of time to the two year period to June 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 June 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 QC17195 into the search bar at the top right of the page.

Relevant facts and circumstances: The deceased passed away in April 201X. Probate was granted in December 201X and you received the new certificate of title in joint names of yourself and your sibling. You and your sibling began the highly emotional task of going through and disposing of your parents possessions. Once probate was granted in December 201X you began preparing the house for sale as the condition had deteriorated, this included repainting the whole house and other repairs inside and out. An agent was appointed in January 201Y to sell the house. The auction was set for March 201Y. Terms of sale were 30 days /settlement April 201Y. The property was sold at auction in April 201Y with settlement taking place in June 201Y.

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