Private ruling: Extension of the main residence exemption for a deceased estate
Date of advice: 24 January 2019
Published: April 2019
Ruling period: Year ending 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time to the two year period to X XXX 20XX? | A1: 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 until X XXX 20XX. Accordingly, any capital gain you make on the disposal of the property will be disregarded. Further information about this extension can be found by searching 'QC 52250' on ato.gov.au

Relevant facts and circumstances: (The deceased) passed away in 200X. The property was the deceased residence up until their death and was never used to produce assessable income. You are the executor and beneficiary of the deceased estate, probate was granted. The property was transferred into your name as the entitled beneficiary under the deceased will in or around XX 200X. This transfer of the property to you was subject the deceased intention as set out in their will. At the time of the deceased death, your relative occupied the property as their main residence and continued to occupy the property as their main residence after the deceased death. All utility accounts were transferred into your relative’s name as the occupant of the property. Your relative died on XX XX 20XX. At the time of their death, your relative was still living in the property. After your relative’s death you signed a contract dated XX XXX 20XX to sell the property with settlement of the sale of the property occurred on X XXX 20XX. In the period between your relative’s death and the sale of the property, you did not derive any rental income from the property and it remained vacant until settlement.

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