Private ruling: CGT – deceased estate – main residence exemption
Date of advice: 11 December 2018
Published: March 2019
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Can any capital gain made upon disposal of the property be disregarded under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes Having considered your circumstances and the relevant facts, it is considered that you meet the requirements of section 118-195 of the ITAA 1997 to enable you to disregard any capital gain made upon the disposal of the property. Further information on CGT exemptions for inherited dwellings can be found on our website ato.gov.au by searching Quick Code QC52247.

Relevant facts and circumstances: The deceased acquired the property after 20 September 1985. The property was rented from acquisition until June 20XX. The deceased lived in the property as their main residence from June 20XX until their death on XX XXXX 20XX. The property was not used to produce income from the deceased’s death until its disposal. Probate was granted XX XXXX 20XX. The property was sold on XX XXXX 20XX, with settlement occurring on X XXXX 20XX.

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