Private ruling: Commissioner's discretion to extend the 2 year main residence exemption period
Date of advice: 7 November 2017
Published: March 2018
Ruling period: Year ending 30 June 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 early 20YY? | 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 early 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 the property before 20 September 1985. They lived in the property as their main residence from the time of purchase until their passing in late 20YY. Probate was granted in early 20YY. The property was transferred to the beneficiaries under the terms of the deceased’s will. The property was sold at auction in late 20YY. The buyers requested an extended settlement of XX weeks. You entered into the sale contract and agreed on a settlement period of XX weeks. Settlement is expected to occur before early 20YY. The process of getting the property ready for sale has been delayed by a beneficiaries personal family situation. The property was not used to produce income after the deceased passed.

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