Private ruling: A deceased estate and the capital gains tax (CGT) main residence exemption
Date of advice: 7 November 2017
Published: March 2018
Ruling period: Year ending 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Will the Commissioner exercise the discretion in section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the main residence exemption to 20XX? | A1: Yes. 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 October 20XX. 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 into the search bar at the top right of the page.

Relevant facts and circumstances: Your parent passed on 20XX. You and your sibling were appointed as Executors of your parent’s estate by way of probate granted over their Will on 20XX. There was a delay as the other Executor did not present the Will to the Court for an extended period of time; you advised the other Executor that if they did not present the Will you would start legal proceedings. On 20XX the other Executor lodged a family provision application with the Court. This application was resolved by way of a deed of settlement between the parties, ratified by the Court, on 20XX. Clear title of the property was transferred to your sole name on 20XX. A contract of sale was entered into over the property which settled on 20XX.

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