Private ruling: Commissioner's discretion and deceased estates
Date of advice: 20 July 2017
Published: November 2017
Ruling period: Year ended 30 June 2017
Date scheme commenced: 1 July 2013

Ruling: Q1: Will the Commissioner exercise the discretion in section 118-195 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 QC17195 into the search bar at the top right of the page.

Relevant facts and circumstances: The deceased purchased the property before 20 September 1985. They lived in it as their main residence until they were required to move into supported accommodation where they later died. They died in 20AA. From the time that the deceased had moved into the supported accommodation and for a number of years after, the property was rented. Due to a dispute among the beneficiaries probate was not granted on the estate until 20XX. The property was then sold with settlement occurring on 20XX.

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