Private ruling: Deceased estate - main residence exemption
Date of advice: 30 November 2023
Published: 15 January 2024
Ruling period: Year ended 30 June 2022
Date scheme commenced: 1 July 2021

Ruling: Q1: Will the capital gain made from the capital gains tax (CGT) event that happened in relation to the Deceased's ownership interest in the Property be disregarded in its entirety in accordance with section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. The conditions for a main residence exemption in accordance with section 118-195 of the ITAA 1997 are satisfied. The Property was the main residence of the Deceased until just before their death. After the Deceased's death, their spouse occupied the Property until the time of settlement of sale of the Property. You can therefore disregard any capital gain made on the sale of the Property.

Relevant facts and circumstances: The Deceased died several years ago. The Deceased and their spouse owned a property (the Property). The Property was the main residence of the Deceased just before they passed away and was not used to produce income at that time. The Property was the main residence of the Deceased's spouse until the time of settlement of sale of the Property. The Property was situated on less than two hectares of land. Letters of Administration were granted. From that point in time, the Deceased's spouse became the administrator of the Deceased's estate. The Property was sold in 20XX with settlement occurring several months later.

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