Private ruling: Deceased estate and the CGT main residence exemption
Date of advice: 13 November 2017
Published: April 2018
Ruling period: Year ending 30 June 20XX.
Date scheme commenced: 1 July 20XX.

Ruling: Q1: Will the Commissioner exercise the discretion in subsection 118-195(1) 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 in 20XX. The deceased owned a property that was their main residence just before their passing. Probate of the will was granted on 20XX, naming two Executors. The spouse of one of the Executors became seriously ill and passed during the process of preparing the property for sale, causing delay. A contract for sale of the property was signed in 20XX, which settled before 20XX.

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