Private ruling: The Commissioner’s discretion to extend the two year period for the main residence exemption
Date of advice: 12 June 2018
Published: August 2018
Ruling period: Year ending 30 June 20XX
Date scheme commenced: April 20XX

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 dispose of the property until 20XX? | 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 20XX. 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: The Deceased bought the Property after 20 September 1985. The Property was the Deceased’s main residence for their entire period of ownership. The Deceased passed away April 20XX. The building was undergoing major renovations at the time that the Deceased passed away. The building’s Council of Owners attempted to engage the Public Trustee to administer the Deceased’s Estate, so that the Deceased’s portion of the renovation levies could be paid. Due to the deteriorated condition of the property the council of owners were concerned about pests and other health issues. The Council of Owners engaged Genealogical Services to find the Deceased’s next of kin on February 20XX. This process was complicated. The Deceased’s next of kin was located. The next of kin engaged solicitors to act on their behalf in administrating the Deceased’s Estate on August 20XX. The appointment of Administrator of the Estate was delayed as further information was required to confirm the Deceased’s identity. The next of kin was appointed the administrator of the Deceased’s estate under a limited grant of Letters of Administration made on March 20XX. The Estate engaged professional cleaners to clean the apartment between the July 20XX and September 20XX. The Estate engaged electrical contractors to carry out electrical maintenance to ensure the safety of the property between the October 20XX and December 20XX. The Property was listed for sale on January 20XX. The Property sold at auction on March 20XX and the sale reached settlement on May 20XX.

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