Private ruling: Two year exemption from capital gains tax for a deceased main residence
Date of advice: 15 August 2019
Published: October 2019
Ruling period: 1 July 20XX to 30 June 20XX
Date scheme commenced: 4 August 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under 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 will allow a short extension of time. Further information about this discretion can be found by searching 'QC 52250' on ato.gov.au

Relevant facts and circumstances: The deceased owned a property. The dwelling at the property (the dwelling) was their main residence at the time of their passing. The dwelling is located on land that is less than two hectares. The deceased's will appointed Executors. The deceased died more than two years ago. Probate was granted a few months later. One of the executors suffered an unforeseen and severe illness. The dwelling was also in a state of disrepair and it took additional time to prepare the dwelling to be marketable. The dwelling was subsequently listed for sale within two years of the deceased's death but was sold and settled more than two years after the deceased's death. The dwelling was not used for income producing purposes from the date of the deceased's death until it was sold.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 115-A | Income Tax Assessment Act 1997 section 102-20 | Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 section 104-10