Private ruling: Extension to the two year period for main residence exemption of a deceased estate
Date of advice: 22 October 2018
Published: December 2018
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the dwelling and disregard the capital gain you make on the disposal? | A1: Yes Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time. Further information about this discretion can be found by searching 'QC 52250' on ato.gov.au

Relevant facts and circumstances: The property was jointly owned from date of purchase. An individual passed away, they had a main residence, and the property remained vacant until settlement. The deceased acquired a 50% interest in the property before 20 September 1985 and the remaining 50% interest was acquired after 20 September 1985. A Trustee was nominated as executor and trustee of the will. The Trustee appeared to have taken no action or progress in relation to the estate. Steps were initiated to request that the Trustee to renounce executorship of the will. A request was made to a principal legal officer of the Crown requesting that steps are taken in regards to the Trustee to have the matter expedited. The Trustee renounced executorship to the beneficiaries. Administration of the estate was granted. Remedial Repair work was completed to the property including but not limited to the following: ● repaint throughout ● replacement of carpet, doorhandles and roller doors ● repair of wooden windows and painting ● replacement of kitchen cupboards with a flat pack product installed by the beneficiaries. The property was sold.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 subsection 118-130(3) | Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 subsection 118-195(1)