Private ruling: A deceased estate and the capital gains tax (CGT) main residence exemption
Date of advice: 8 November 2017
Published: March 2018
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion in section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the main residence exemption to 20XX? | 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 20XX. Further information on the relevant factors and inheriting a dwelling generally can be found on our website ato.gov.au and entering Quick Code QC52250 into the search bar at the top right of the page.

Relevant facts and circumstances: The deceased purchased a property before 20 September 1985 and used it as their principal place of residence until the date of their passing on 20XX. The property was to pass to their three children in equal shares under the Will, which was granted probate on 20XX. The deceased’s disabled child lived in the property with them before and after the deceased’s passing until they also passed in early 20XX, using it as their main residence. The property contracted for sale which settled on 20XX.

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