Private ruling: Capital gains tax - deceased estate - Commissioner's discretion to extend the two year period - main residence exemption
Date of advice: 28 August 2019
Published: October 2019
Ruling period: Year ending 30 June 2019
Date scheme commenced: 1 July 2015

Ruling: Q1: Will the Commissioner allow an extension of time to mid November 2018 for you to dispose of your ownership interest in the dwelling and disregard the capital gain you make on the disposal? | 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 passed away in 20XX. The deceased acquired a property with their spouse prior to 20 September 1985 and elected it as their principle place of residence until their death The deceased obtained full ownership of the property in 19XX. The deceased had a will. The whole estate was left to the deceased's three children, in equal shares. Probate was granted in 20XX. The property was vacant and did not produce any income from the date of death until the date of sale. No property improvements were completed after the date of death. The sale of the property was delayed because the house was in a remote location and it took considerable time for the beneficiaries to sort through the house and make a decision regarding its sale. It was very hard and overwhelming for the beneficiaries to put the house on the market and sell it within two years. Medical and financial issues affected one of the beneficiaries which also contributed to further delays. This prevented the dwelling being sold within two years from the deceased's death. In 20XX the deceased's child (one of the beneficiaries) purchased the property. The dwelling was purchased at market value. The sale took place within a short period of time outside the two year period.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 104-10, | Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 subsection 118-195(1)