Private ruling: CGT – deceased estate – right to reside
Date of advice: 21 March 2019
Published: May 2019
Ruling period: Year ended 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Will section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) apply to disregard any capital gain made from the disposal of the property? | A1: Yes Having considered your circumstances and the relevant factors, it is considered that you satisfy the conditions contained in section 118-195 of the ITAA 1997. Accordingly, you can disregard any capital gain or loss that arises as a result of the disposal of the property.

Relevant facts and circumstances: The deceased died on XX July 19XX. The deceased acquired the property after 20 September 1986. The property was the main residence of the deceased and their spouse until their death. Probate was granted on XX October 19XX, appointing A and B as Executors. The deceased’s will provided the spouse with the right to reside in the property. The spouse resided in the property as their main residence until XX November 20XX, at which time they moved into a care facility. The property has not been used for the purpose of producing assessable income. The house has been placed on the market to be sold.

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