Private ruling: Capital gains tax - main residence exemption
Date of advice: 22 January 2021
Published: March 2021
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner allow an extension of time to for you to dispose of your ownership interest in the deceased main residence dwelling and disregard the capital gain you make on the disposal? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner will allow an extension of time. Further information about this discretion can be found by searching 'QC 52250' on ato.gov.au

Relevant facts and circumstances: The deceased died in 20XX. The deceased purchased the property in 19XX as sole owner. At the time the property included a single dwelling (Dwelling A). In the following year a second dwelling (Dwelling B) was constructed to the rear of the property. Dwelling B was chosen as the deceased's main residence from the time the land upon which it was built was acquired. Dwelling B continued as the deceased's main residence until death. The Will provided for a beneficiary to subdivide the property and purchase Dwelling A. Subdivision approval took several years due to its complex nature. Certification for the subdivision took an additional six months. The deceased main residence dwelling (Dwelling B), was sold and settled a short time after the subdivision certification. Dwelling A was dealt with separately. This ruling does not apply to that property sale of Dwelling A.

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