Private ruling: Two year exemption from capital gains tax for a deceased main residence.
Date of advice: 23 May 2019
Published: July 2019
Ruling period: 1 July 2018 to 30 June 2019
Date scheme commenced: 16 January 2014

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: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. 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 will appointed a number of the deceased’s children as executors and trustees. The deceased’s will provided for a number of beneficiaries. One of the beneficiaries who is also one of the executors, moved into the dwelling to assist with the care of the deceased prior to death. After some time, the deceased passed away. That beneficiary continued to live at the dwelling. The executors were unable to attend to the deceased estate due to: ● Serious and ongoing health issues in relation to some of beneficiaries and executors ● Other issues beyond the control of the executors The dwelling was not used for income producing purposes from the date of 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