Private ruling: Deceased estate and the capital gains tax (CGT) main residence exemption
Date of advice: 20 November 2017
Published: April 2018
Ruling period: Year ending 20XX.
Date scheme commenced: 1 July 20XX.

Ruling: Q1: Will the Commissioner exercise the discretion in subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the main residence exemption to 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 20XX. Further information on the relevant factors and inheriting a dwelling generally can be found on our website ato.gov.au and entering Quick Code QC52250 into the search bar at the top right of the page.

Relevant facts and circumstances: The deceased passed on 20XX. The deceased owned a property purchased on a date after 20 September 1985 that was their main residence up until their passing. There was a delay in obtaining the will of the deceased from the deceased’s former solicitors. A contract for sale was entered into on 20XX, which settled on 20XX, a period of more than 2 years since the deceased’s date of passing.

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