Private ruling: Commissioner's discretion to extend the two year period for a deceased estate main residence exemption
Date of advice: 20 May 2019
Published: July 2019
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the dwelling and disregard the capital gain you make on the disposal? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time. Further information about this discretion can be found by searching 'QC 52250' on ato.gov.au

Relevant facts and circumstances: The deceased purchased a main residence (property A) post 20 September 1985. The deceased passed away and probate was granted. An insurance claim was made in relation to property A to repair damage to three skylights due to weather damage. An insurance company was contacted in relation to structural damage to the brick veneer bedroom of property A, this claim was rejected due to no insured event occurring. Access to property B was required to address the structural damage at property A. Negotiations with the owners of a property B were entered into however these failed. An application for relief to the relevant statutory officer was made. The owners at property B entered their own submission. The relevant statutory officer made an order in favour of the applicant representing property A this was appealed by the owners at property B. The matter was referred to an appeal tribunal with a direction hearing set for a specific date. Final orders were handed down by the chairman of the relevant appeal tribunal which included writing in builders as the contractor to undertake the remediation works. A body corporate meeting was held, Lawyers representing property A attended as a proxy for the trustees to appoint a Project Manager/Engineer, Surveyor and Builders according to the Tribunal orders to address the remediation works. Final building contract was executed and received. Remediation works commenced with completion occurring. The project manager signed off on the job. Standard of work certificate and notice of low risk work plumbing permit were lodged to the relevant Council by the builder Final approval was given by the relevant Council. The property was advertised for sale with a contract signed. Settlement took place.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 subsection 118-130(3) | Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 subsection 118-195(