Private ruling: CGT - main residence exemption
Date of advice: 2 August 2024
Published: 16 September 2024
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) to allow an extension of 6 months, to receive the main residence exemption? | A1: Yes.

Relevant facts and circumstances: The Deceased passed away on XXX 20XX. The Deceased's main residence address was XX. The property was not used for the purpose of producing assessable income at the time of the Deceased's death. The Deceased left a Will. Under the Will, the beneficiaries are the Deceased's children. Mr X and Mr Y are the Executor/s for the Deceased's Estate. Probate was granted on XXX 20XX. The executor's changed accountants on XX 20XX. The Executor/s and the Primary Beneficiaries to the Estate entered into an arrangement to document their agreed distribution of the residue estate on XXX 20XX. The arrangement was signed off on XXX 20XX. On XXX 20XX, the Executor/s signed the transfer documents for the transfer of the Deceased's main residence to Mr X. The DFA and the Transfer documents were lodged with state authorities for duties assessment under Bundle ID XXXXX on XXX 20XX. Instruction to solicitor to seek Commissioner's extension of 2 year limit on XXX 20XX. An application was made to the ATO for advice on XXX 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 subsection 118-195(1) | Income Tax Assessment Act 1997 paragraph 118-195(1)(b)