Private ruling: Main residence exemption
Date of advice: 2 February 2018
Published: June 2018
Ruling period: Year ended 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 DDMMYY. Probate was granted for the estate in August 201X. The administration of the estate was delayed due to the Will being challenged and a Family Provision Claim being lodged by one of the beneficiaries. The Family Provision Claim was first made on or around August 201X and was settled by mediation in July 201Y. The dwelling had to be disposed of pursuant to those orders and the executor subsequently made arrangements for the sale of the main residence (and adjoining properties which were to be sold together if possible). The properties were listed with an agent and were sold at auction in November 201Y. Due to the unusual nature of the properties a six month settlement was negotiated by the purchaser which means that settlement of the properties will be in May 201Z.

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