Private ruling: Commissioner's discretion to extend the main residence exemption
Date of advice: 24 August 2017
Published: December 2017
Ruling period: Year ended 30 June xxxx
Date scheme commenced: 01 July xxxx

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 until Date? | 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 Date. Further information on the relevant factors and inheriting a dwelling generally can be found on our website ato.gov.au and entering Quick Code QC52250 into the search bar at the top right of the page.

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. Deceased and spouse acquired the property in xxxx The property was the family home. The deceased divorced. The family court ordered that the property be sold to pay a 50% share. The client acquired the 50% share in xxxx The deceased continued to live in the property until their death. A caveat was lodged on the property title on xxxx, pursuant to a claim on the Estate. This caveat was removed on xxxx after the Relevant Court ordered the removal of the caveat. This caveat and legal action prevented the sale of the property. The property was auctioned and settlement occurred on xxxx. The property remained vacant from the date of death of the deceased until settlement occurred.

Relevant legislative provisions: Income Tax Assessment Act 1997 s118-195.