Private ruling: Capital Gains Tax – Main Residence Exemption
Date of advice: 24 November 2017
Published: April 2018
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Is a full main residence exemption allowable under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) with respect to the disposal of the property? | A1: Yes Having considered your circumstances and the relevant factors, a full main residence exemption is allowable under subsection 118-195(1) of the ITAA 1997. Further information on the relevant factors, and inheriting a dwelling generally, can be found on our website ato.gov.au by entering Quick Code QC52247 into the search bar at the top right of the page.

Relevant facts and circumstances: The deceased died in late 20XX. The deceased and their spouse acquired their main residence (the property) prior to 20 September 1985. Throughout the entire ownership period the property was not used to produce assessable income. Under the deceased’s will, the deceased’s spouse had the right to occupy the property until their death. The deceased’s spouse continued to occupy the property until they died in mid 20XX. Probate was granted in late 20XX. There were X beneficiaries of the deceased’s estate. The property was sold and settlement occurred in late 20XX. The property was held by the beneficiaries when settlement occurred.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 118-195(1).