Private ruling: Income tax - capital gains tax - main residence exemption for a deceased estate
Date of advice: 9 April 2020
Published: May 2020
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Was Individual B absolutely entitled to the property? | A1: Yes. As the estate of Individual A was fully administered it is considered that Anthony had a vest and indefeasible interest in the property. | Q2: Did a CGT event happen to trustee of Individual B's estate when the property was sold? | A2: Yes. CGT event A1 occurred when the trustee disposed of the property. | Q3: Is the trustee able to disregard some or all of the gain from the property? | A3: Yes. The trustee is able to disregard the entire capital gain under section 118-195 of the ITAA 1997.

Relevant facts and circumstances: Individual A passed away and owned a property which was left to Individual B. Individual A used the property as their main residence and it was never used to produce income. Individual B (The deceased) passed away. The property was the deceased's main residence at time of death and the land size is less than 2 hectares. The deceased nominated his Executor. The will provided a bequest of the cash in the bank to one beneficiary after which his executor was to dispose of all other assets and evenly distribute the cash to all the other beneficiaries. A contract of sale for the property was signed on xx xxx xxxx with settlement occurring on xx xxx xxxx

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 118-195 | Income Tax Assessment Act 1997 section 104-10