Private ruling: Deceased estate and the capital gains tax (CGT) main residence exemption
Date of advice: 10 October 2017
Published: February 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 passed on 20XX. The Deceased had a property purchased after 20 September 1985 that was their main residence up to the date of their passing. The property has not been used for the purpose of producing assessable income before or after the Deceased passed. Probate of the estate was granted to the Deceased’s children on 20XX as Executors. The Executors were unable to agree on many matters of the administration of the estate and an application was made to the Supreme Court for their removal and to have the Public Trustee appointed as Executor in an order dated 20XX. A contract for sale of the property was settled on 20XX, more than two years after the date of the Deceased’s passing.

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