Private ruling: CGT - deceased estate - main residence exemption
Date of advice: 6 June 2023
Published: 7 August 2023
Ruling period: Year ending 30 June 2023
Date scheme commenced: 1 July 2022

Ruling: Q1: Will the Commissioner exercise the discretion in section 118-195 of the Income Tax Assessment Act 1997 to extend the two-year period and disregard any capital gain made on the disposal of the property? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner will allow an extension of time. Further information about the Commissioner's discretion can be found by searching ato.gov.au for 'QC 66057'

Relevant facts and circumstances: The property at XXXX was purchased by the deceased in XX 19XX. The property is less than two hectares. The deceased passed away on XX XX 19XX. The property was the deceased's main residence at the time of death and never used to produce income. The deceased's will gave to their child the right to reside in the property as long as they wished. The child resided at the property until their death on XX XX 20XX. The property was never used to produce income. The deceased's will directed that distribution of the estate should not occur until XX months after the death of the other child. This child is still alive and legal consideration was sought regarding the disposal of the property. The property was listed for sale on XX XX 20XX. A contract for sale of the property was entered on XX XX 20XX and settlement occurred on XX XX 20XX.

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