Private ruling: Two year exemption from capital gains tax for a deceased main residence.
Date of advice: 4 March 2019
Published: May 2019
Ruling period: 1 July 2015 to 30 June 2017
Date scheme commenced: 1 July 2015

Ruling: Q1: Will the Commissioner exercise the discretion under 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 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 resided in their main residence until they passed. The property was never used for investment purposes. The will appointed one executor, once all the expenses were paid from the estate the remaining cash was divided between the beneficiaries and the property was to be distributed into equal shares between them. One of the deceased’s children resided in the property to care for them until they passed. It was decided between the beneficiaries that the child could continue to reside in the property until the early months of 2017. Two years after the deceased passed, the beneficiaries entered into an agreement that the property would be available to be purchased by one of the beneficiaries. The executor transferred the title from the estate to the beneficiaries. Once complete, the property was purchased by the nominated child and settlement occurred shortly after.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 115-A | Income Tax Assessment Act 1997 section 102-20 | Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 section 104-10