Private ruling: A deceased estate and the capital gains tax (CGT) main residence exemption
Date of advice: 7 November 2011
Published: March 2018
Ruling period: Year ending 2018.
Date scheme commenced: 1 July 2017.

Ruling: Q1: Will the Commissioner exercise the discretion in section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the main residence exemption to 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 purchased a property which was used as a main residence until the deceased passed away. Probate of the will was granted to Individual A (you) in April 20XX. The property required repairs in order to restore it to a saleable condition. You undertook some of this work yourself. A family member of yours passed away in March 20XX. The property was contracted for sale, which settled in October 20XX.

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