Private ruling: Main residence exemption
Date of advice: 13 June 2018
Published: August 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? | 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. 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. The deceased main residence was never rented out. Probate was granted in July 201X. The house was placed on the market in June 201Y. The delay was caused to a major health and personal issues. Due to the condition of the house, the agent was finding it difficult to sell at the asking price. You let the first agent go an engaged another agent who was familiar with the area and accepted the first reasonable offer they received. A contract of sale was signed with settlement outside the two year period.

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