Private ruling: Two year exemption from capital gains tax for a deceased main residence
Date of advice: 10 July 2019
Published: September 2019
Ruling period: 1 July 2018 to 30 June 2019
Date scheme commenced: 21 May 2016

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 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 had owned the dwelling from XXXX until the date of their death. The dwelling was used as their main residence at all times during the period of ownership. The deceased's Will appointed executors and trustees. The deceased's Will provided for a number of beneficiaries. The deceased died on XXXX. Probate was granted on XXXX. The dwelling was sold under contract on the XXXX and settlement was on XXXX You, as executor were unable to attend to the deceased estate due to: · The complexity in administering the estate when the Public Trustee suspended administration of the estate for a period of time · Other issues beyond the control of the executor including extensive cleaning and preparations to get the dwelling on the market 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