Private ruling: CGT - deceased estate
Date of advice: 6 December 2023
Published: 22 January 2024
Ruling period: Financial year ended 30 June CCYY
Date scheme commenced: XX/MM/CCYY

Ruling: Q1: Can you disregard the capital gain or capital loss under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) on the sale of the property acquired by the deceased estate? | A1: Yes. Where the deceased was a resident of Australia for tax purposes at the time of their death, the main residence exemption accrued by the deceased for the dwelling continues to be available to a foreign resident trustee or beneficiary who inherits the dwelling from the deceased estate.

Relevant facts and circumstances: The deceased both passed away on XX/MM/CCYY. The dwelling is located at a place (the property). The deceased acquired the property before 20 September 1985. The property was the main residence of the deceased just before they passed away and was not used to produce assessable income at that time. The property was situated on less than two hectares of land. Probate was granted on XX/MM/CCYY. A contract was entered into to sell the property on XX/MM/CCYY with settlement occurring on XX/MM/CCYY. The executor named in the will was a non-resident at the time that probate was granted and they agreed to act as trustee for the estates.

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