Private ruling: Extension of the main residence exemption for a deceased estate
Date of advice: 5 October 2018
Published: November 2018
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

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 of the two year period? | A1: Yes Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion for up to two hectares of land with your dwelling under subsection 118-195(1) of the ITAA 1997 and allow an extension of time. 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: You are the executor and beneficiary of the deceased. Probate was granted. A decision to sell the property was made by you and the other beneficiaries. However the title never came into your procession or control. The property is more than two hectares. After an exhaustive search at the deceased’s property you were unable to locate the missing Certificate of Title. It took months of exhaustive search and eventually the Certificate of Title was declared lost by the relevant law firms allowing you to apply for a replacement. With the festive holidays following, the property was finally put on the market in early 20XX. Further delays were caused due to the unexpected closure of your legal firms. The property was eventually sold and settled.

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