Private ruling: Two year exemption from capital gains tax for a deceased main residence
Date of advice: 25 February 2019
Published: May 2019
Ruling period: 1 July 20XX to 30 June 20XX
Date scheme commenced: XX August 20XX

Ruling: Q1: Will the Commissioner exercise his 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 more than one executors of the will. Once all the expenses were payed from the estate the remaining amount was to be divided into several equal parts to the beneficiaries. 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 for another few months. There was a formal claim made against the estate by some of the beneficiaries. The mediation process took over 12 months and was finalised in the Supreme Court. The property was put on the market after the dispute was finalised and sold outside the two year exemption period.

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