Private ruling: Main residence exemption for capital gains tax on deceased estates
Date of advice: 18 January 2021
Published: March 2021
Ruling period: Year ended DD MM YYYY
Date scheme commenced: DD MM YYYY

Ruling: Q1: Will the Commissioner exercise the discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the 2-year period? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply the discretion under subsection 118-195(1) of the ITAA 1997 and allow an extension of time until DD MM YYYY. 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.

Relevant facts and circumstances: The Deceased inherited sole ownership of the property from their spouse. The Deceased passed away. Probate (of the will) was granted. The ownership of the house was transferred to the executors of the will. The property required repairs and maintenance to be fit for sale. The property was listed for sale. A contract of sale was entered. Settlement occurred. The property was the main residence of the deceased until the time of their death. The property was never used for income producing purposes.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 118-195(1)


Subject: Main residence exemption for capital gains tax on deceased estates: This ruling applies to the beneficiaries of the trust and to the trustee and to any future trustees, for as long as the ruling remains current.