Private ruling: Two year exemption from capital gains tax for a deceased main residence
Date of advice: 11 March 2019
Published: May 2019
Ruling period: 1 July 20XX to 30 June 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 an 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 dwelling which was their main residence until they passed. The property has been the main residence of the family for a number of decades and was never used for investment purposes. The deceased’s passing was sudden and unexpected; the family was also facing personal medical circumstances that delayed the process of applying for probate that was granted the following year. It was decided to sell the property and not long after this a cyclone hit the area in the early months of 20XX. There was substantial damage to the property effecting three different areas within the property. Due to the cyclone and the amount of damage caused to the area, the work to the property was delayed due to the inability to find tradespersons to complete the work. After the property was repaired the property was active ly marketed and sold in the later months of 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 subsection 118-130(3) | Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 subsection 118-195(1)