Private ruling: Deceased estate - main residence
Date of advice: 24 July 2025
Published: 22 September 2025
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: XX XXXX 20XX

Ruling: Q1: Can the capital gain you made in relation to the dwelling located at Property A be disregarded under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes.When the deceased moved to Property B, they chose to continue to treat Property A as their main residence. During their absence the deceased left all their belongings at Property A. Although someone stayed in Property A property from XXXX 20XX to XXXX 20XX, they were only responsible for their utilities and usage charges. The deceased did not use Property A for income producing purposes. Based on the information provided the deceased did not treat any other residence as their main residence in this time. Upon the deceased's death Property A passed to you as trustee of the deceased estate. CGT event A1 occurred in relation to the Xxx property when it was sold, and your ownership interest in the property ended within two years of their death. Any capital gain you make will be disregarded in accordance with section 118-195, as the conditions contained in paragraph 118-195(1)(a) and 118-195(1)(c) are met, and the condition contained in paragraph 118-195(1)(b) will also met as item 1 in column 2 of the table and item 1 in column 3 of the table will be satisfied.

Relevant facts and circumstances: After 20 September 19YY, the deceased solely purchased the dwelling located at Property A. Property A is less than 2 hectares. The deceased treated Property A as their main residence and did not use it to produce income. On XX XXXX 20XX, the deceased parent passed. On XX XXXX 20XX, the deceased was appointed the executor by the Supreme Court, in the estate of their parent. The deceased inherited the dwelling situated at Property B from the estate of their late parent. On XX XXXX 20XX, the deceased moved into Property B. When moving to Property B, the deceased left their belongings at Property A. The deceased continued to treat Property A as their main residence while residing in Property B. In or around XXXX 20XX, Person A moved into Property A. Person A only paid for the utilities and usage charges related to the property and did not pay rent. On XX XXXX 20XX, the deceased passed. The deceased was occupying Property B at the time they passed. After XX XXXX 20XX, there were no repairs or improvements made to Property A. On XX XXXX 20XX, you applied for Probate. On XX XXXX 20XX, Property B was sold at a capital loss. On XX XXXX 20XX, you sold Property A. On XX XXXX 20XX, Property B settled. On XX XXXX 20XX, Person A moved out of Property A. On XX XXXX 20XX, all claims against the estate were finalised. On XX XXXX 20XX, settlement of Property A occurred.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 subdivision 118-B | Income Tax Assessment Act 1997 section 118-110 | Income Tax Assessment Act 1997 section 118-145 | Income Tax Assessment Act 1997 section 118-195