Private ruling: Capital gains tax – deceased estate – Commissioner’s discretion to extend the two year period – main residence exemption
Date of advice: 19 March 2018
Published: June 2018
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

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 until March 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 March 20XX. Further information on the relevant factors and inheriting a dwelling generally can be found on our website ato.g ov.au and entering QC52250 into the search bar at the top right of the page.

Relevant facts and circumstances: The deceased purchased the property prior to September 1985. The deceased did not use the property to produce assessable income. The deceased occupied the property as their main residence until they passed away in November 20XX. Under the will, the deceased bequeathed the property to you. The property was unable to be sold within the two year period as you experienced ill health. The property was vacant and was not used to produce income after it was acquired. The property was listed for sale in January 20XX. The contact date for the sale of the property was in February 20XX and settlement occurred in March 20XX.

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