Private ruling: CGT - deceased estate main residence exemption
Date of advice: 6 June 2017
Published: November 2017
Ruling period: Year ending 30 June 2017
Date scheme commenced: 1 July 2016

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 XX June 2017? | 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 XX June 2017. Further information on the relevant factors and inheriting a dwelling generally can be found on our website https://www.ato.gov.au and entering Quick Code QC17195 into the search bar at the top right of the page.

Relevant facts and circumstances: The deceased passed away. The deceased acquired the property pre CGT. The deceased lived in the property with their spouse, it was always their main residence and your family home. The deceased’s Will was contested. Probate was granted more than a year after the deceased’s passing. The property needed repairs, to return it to a liveable and saleable condition. You were not able to undertake these until probate was granted. The property was not used to produce assessable income. The property was under contract within 2 years of the deceased’s passing, with settlement due to occur just outside the time frame.

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