Private ruling: Commissioner’s discretion to extend the two year period for a main residence exemption
Date of advice: 30 May 2018
Published: September 2018
Ruling period: Year ending 30 June 20XX
Date scheme commenced: April 20XX

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time to the two year period to dispose of the property to XX January 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 XX January 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 and their spouse purchased a Property as joint tenants before 20 September 1985. The property was the deceased’s main residence. The Property was less than 2 hectares in size. The Deceased’s spouse passed away and their ownership interest in the Property was transferred to the Deceased XX September 19XX. The Deceased passed away April 20XX and probate was granted June 20XX. The sale of the Property was delayed as both Executors required medical treatment throughout the two year period. Both Executors lived interstate which added to the difficulty of attending to the Property. The Property was briefly occupied by one of the Executor of the Estate as they made preparations for the sale of the Property. The Property sold on December 20XX and the settlement date was January 20XX.

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