Private ruling: Income tax - capital gains tax - deceased estate - main residence exemption
Date of advice: 8 March 2021
Published: May 2021
Ruling period: Year ended DD MM YYYY
Date scheme commenced: DD MM YYYY

Ruling: Q1: Will the Commissioner exercise the discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the two-year period? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply the 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 QC52250.

Relevant facts and circumstances: Before 20 September 1985, you and your parent purchased a property. Your parent obtained 72% ownership interest in the property. You obtained 28% ownership in the property. Your parent passed away. Upon the death of your parent, you inherited an additional 36% ownership interest, totalling 64% ownership interest. Upon the death of your parent, your sister inherited 36% ownership interest of the property. You sold the property. You have used the property as your main residence. The property has never been used for income producing purposes. Covid-19 delayed the disposal of the property.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 118-195(1)