Private ruling: Capital gains tax
Date of advice: 30 January 2018
Published: June 2018
Ruling period: Year ending 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Can you disregard the capital gain made on disposal of the property under section 118-195? | A1: Yes Having considered your circumstances and the relevant factors, the Commissioner is able to confirm the exemption of capital gains tax under subsection 118-195(1) of the ITAA 1997. 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 passed away. The property was acquired by the deceased prior to 1985. The deceased and their Life Tenant used the property as their main residence for the entire ownership period. The property was never used for income producing purposes. The estate was administered by the appointment of their solicitor. Probate was granted and the title to the residence was transfers to the Estate’s Trustee to hold and administrate under the directive of the Will. The decease’s relative, was granted “life tenancy” under the terms of the Will. The life tenant moved into a nursing home. The Trustee took possession of the property and arranged for its sale. The sale took place. The property settled.

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