Private ruling: CGT 2 year exemption deceased estate
Date of advice: 8 December 2017
Published: April 2018
Ruling period: Year ended 30 June 2018
Date scheme commenced: 01 July 2017

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 118-195(1)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the two-year limit to disregard a capital gain on the sale of the deceased taxpayers main residence. | 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. Further information on the relevant factors and inheriting a dwelling generally can be found on our website ato.gov.au and entering Quick Code QC 52245 into the search bar at the top right of the page.

Relevant facts and circumstances: A person passed away. The person was the sole owner of a residence; this was the primary place of residence. The property size is XXXX hectare. The property has not been used as an income producing property since the date of death and has remained vacant until settlement. Probate was granted. The property was put on the market. A contract for sale was signed subject to council approval which was not approved resulting in the contract being rescinded. Another contract was signed with a new purchaser; this was subject to council approval which was rejected by council. A third unconditional contract was signed. Settlement occurred.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 subsection 118-130(3) | Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 subsection 118-195(1)