Private ruling: Income tax – main residence exemption
Date of advice: 1 September 2018
Published: October 2018
Ruling period: Year ending 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 to the two year period to X June 20XX? | A1: Yes . Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time. Further information about the discretion 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. | Q2: Can you disregard any capital gain or loss that arises from the disposal under section 118-195 of the ITAA 1997? | A2: Yes. As a result of extension of the two year time limit, you satisfy all of the conditions in section 118-195 of the ITAA 1997. Accordingly, you can disregard any capital gain or loss that arises as a result of the disposal of the property.

Relevant facts and circumstances: The deceased passed away on XX of December 20XX. Letters of administration were granted in March 20XX appointed Public Trustee as executor of the estate as the deceased passed away without a Will. The deceased acquired their main residence in approximately 19XX. The deceased lived there until sometime before their death. The property was not used for income producing purposes at any time during the deceased’s ownership period or after death. The Public Trustee was not able to sell the property within the two years of the deceased death as there was considerable difficulty in establishing the beneficiaries of the estate. No living beneficiaries were able to be identified. The deceased did not own another dwelling.

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