Private ruling: Commissioner's discretion to extend the 2 year main residence exemption
Date of advice: 8 June 2017
Published: October 2017
Ruling period: Year ending 30 June 2017
Date scheme commenced: 1 July 2016

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA1997) in relation to the property and allow an extension of time? | 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 03/05/2017. Further information on the relevant factors and inheriting a dwelling generally can be found on our website https://www.ato.gov.au and entering Quick Code QC17195 into the search bar at the top right of the page.

Relevant facts and circumstances: The property was acquired by the deceased and their spouse before 20 September 1985. The property was used as their main residence from the date of acquisition. The deceased’s spouse died before 20 September 1985 and left the residence to them. The title was transferred to the deceased. The deceased passed away in 20xx. Family members of the deceased owned and lived in the property next door and, for emotional and sentimental reasons, decided to sell their home at the same time as the deceased’s home was up for sale. In late 20xx a buyer for the two properties was found and a contract was signed. The buyer requested a protracted settlement period however this purchase of the properties fell through. Another buyer was found quickly and a new contract was signed in early 20xx. Settlement of this property occurred in 20xx.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 118-195(1)