Private ruling: Two year exemption from capital gains tax for a deceased main residence
Date of advice: 6 June 2019
Published: August 2019
Ruling period: 1 July 20XX to 30 June 20XX
Date scheme commenced: 23 October 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time to the two year period? | 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 more than two years ago. The deceased owned a property. The dwelling at the property (the dwelling) was their main residence at the time of their passing. The dwelling is located on land that is less than two hectares. The deceased's will provided a life interest to Person A. Person A encountered medical issues, which you also attended to. You experienced difficulty in removing Person A from the dwelling in order for them to receive appropriate care. You also were acting as the administrator of another estate. You found that the dwelling was left in poor state, and it took additional time to clear and clean the property for sale. The dwelling was quickly sold when ready but settlement occurred, after the two year period. The dwelling was not used for income producing purposes from the date of the deceased's death until it was sold.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 115-A | Income Tax Assessment Act 1997 section 102-20 | Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 section 104-10