Private ruling: Extension of the main residence exemption for a deceased estate
Date of advice: 4 October 2018
Published: November 2018
Ruling period: Year ended 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Will the Commissioner allow an extension of time to XX XXX XXXX 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 extension can be found by searching 'QC 52250' on ato.gov.au

Relevant facts and circumstances: You are the executor and beneficiary of the Estate. You and your siblings were appointed executors in the Will, probate was granted and the house was transferred to the executors. Rental began in mid-December 20XX and continued until December 20XX as the sale was for vacant possession. Discussions about the possible process for sale of the land were conducted with local agents by the trustees from late 20XX to early 20XX. A real estate consultant was involved and several reports were written suggesting the sale processes. The local agents gave many assurances that they would find a suitable buyer. Consequently a sale sign and advertising were paid in 20XX but no worthwhile responses came from this. In 20XX it became apparent that there was little or no likelihood of a local buyer for the property. As result in 20XX you approached an entity to see if they were interested in the property. They were interested and so the process commenced so they could commit to beginning a contract. The property was eventually sold and settled.

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