Private ruling: Main Residence exemption
Date of advice: 4 January 2018
Published: May 2018
Ruling period: Year ended 30 June 2017
Date scheme commenced: 1 July 2016

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time to the two year period to March 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 March 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 QC 52250 into the search bar at the top right of the page.

Relevant facts and circumstances: You are the executor of an Estate. The will stated that the property be held in trust by you as executor for the three beneficiaries. Probate was granted on September 20XX and the land title was transferred to you (as executor) in October 20XX. The will also stated that the deceased spouse be permitted to live in the property for their life or until remarriage (a right of occupancy). The property was their main residence until they chose to vacate the property on December 20XX and moved into a retirement village. A deed of family arrangement was signed on December 20XX where they relinquished their right of occupancy. The property was sold at auction on February 20XX with settlement taking place March 20XX.

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