Private ruling: Main residence exemption
Date of advice: 30 August 2022
Published: November 2022
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will section 118-195 of the Income Tax Assessment Act 1997 operate to disregard the capital gain from the insurance compensation payment after CGT event C1 occurred to the deceased's main residence? | A1: Yes, CGT event C1 occurred to the deceased's main residence within two years of death of the deceased, satisfying the requirements of section 118-195 and disregarding the capital gain that arose from the insurance proceeds received for the destruction of the property.

Relevant facts and circumstances: The deceased died Within two years of the deceased's death, the property was destroyed The property was the deceased's main residence throughout their ownership period, it was purchased by the deceased after 20 September 1985 The property was insured for an amount, which was paid to you as the executor of the deceased's estate

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