Private ruling: Commissioner's discretion and deceased estates
Date of advice: 26 July 2017
Published: November 2017
Ruling period: Year ending 30 June 2018 | Year ending 30 June 2019
Date scheme commenced: 1 July 2017

Ruling: Q1: Will the Commissioner exercise the discretion in section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the main residence exemption to late 20ZZ? | 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 late 20ZZ. Further information on the relevant factors and inheriting a dwelling generally can be found on our website ato.gov.au and entering Quick Code QC17195 into the search bar at the top right of the page.

Relevant facts and circumstances: The deceased purchased the property before 20 September 1985. They lived in their property as their main residence from purchase until they died. They passed away in late 20XX. In their will they appointed you as the executor. In early 20XX a relative died and another injured. The injured relative was later released from hospital into your care. As a result of the burden and grieving of the deceased’s death you became sick. Given the events that have occurred, you have not had the opportunity to seek advice on the sale of the property or administer the deceased’s estate.

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