Private ruling: Capital Gains Tax Deceased Estate – Main Residence Exemption
Date of advice: 3 October 2017
Published: February 2018
Ruling period: Year ended 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 extend the two year period? | A1: Yes.

Relevant facts and circumstances: The property was acquired by the deceased prior to Capital Gains Tax being implemented. The deceased used the property as their main residence for the entire ownership period. The property was never used for income producing purposes. After the passing of the deceased, the beneficiaries could not agree upon the value or the status of the property. As no agreement could be reached the beneficiaries agreed that the property be sold as soon as circumstances allowed by public auction. The property was sold at auction within the two year period however did not settle until soon after the two year period.

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

Reasons for decision: Summary: 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 DDMMYY. 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.