Private ruling: Main residence exemption
Date of advice: 7 June 2018
Published: August 2018
Ruling period: Year ending 30 June 2018
Date scheme commenced: 1 July 2017

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

Relevant facts and circumstances: (The deceased) passed away in February 2016. Probate was granted in December 2016. A contract of sale was signed in September 2017 with settlement due in February 2018. The contract was conditional on finance but became unconditional. The purchaser failed to settle the contract on the due date which would have been before the second anniversary of the deceased death. A notice of default was issued in March 2018 calling for settlement within x days. Settlement took place in March 2018.

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