Private ruling: The Commissioner’s discretion to extend the two year period for the main residence exemption
Date of advice: 20 December 2018
Published: April 2019
Ruling period: Financial year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the 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? | A1: Yes Having considered your circumstances and the relevant factors, the Commissioner is able to exercise his discretion under subsection 118-195(1) of the ITAA 1997 and allow an extension of time.

Relevant facts and circumstances: A property was acquired by the deceased before 20 September 1985. The dwelling was occupied by the owner as their main residence. The deceased resided in the dwelling until they moved to other accommodation. The deceased passed away within the following year. The property was not used to produce income and the deceased did not own any other property. The deceased had a will and the dwelling was left to the children as beneficiaries. The beneficiaries experienced difficulties and a lengthy process in finalising the deceased’s estate, dealing with multiple deceased estate and complex land titles to do with the property being divided into shares. Probate of Will of the deceased was granted to the sole beneficiaries. A new title for the dwelling was issued in the beneficiaries names. The dwelling has been sold more than two years after the date of death of the deceased.

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