Private ruling: Two year exemption from capital gains tax for a deceased main residence.
Date of advice: 5 December 2019
Published: March 2020
Ruling period: 1 July 2019 to 30 June 2020
Date scheme commenced: 16 June 2017

Ruling: Q1: Will the Commissioner exercise the discretion under subsection 118-195(1) of the Income Tax Assessment Act 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 a short 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 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 died more than two years ago. The deceased's left a will. Probate was granted, however, family provision proceedings commenced. The proceedings were settled and orders were issued sometime later. The dwelling was subsequently sold, however, settlement a number of months more than two years after the deceased's death. The dwelling was not used for income producing purposes.

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