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Edited version of private advice
Authorisation Number: 1051533036795
Date of advice: 20 June 2019
Ruling
Subject: Two year exemption from capital gains tax for a deceased main residence
Question
Will the Commissioner exercise the 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?
Answer
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
This ruling applies for the following period:
1 July 20XX to 31 August 20XX
The scheme commences on:
20 January 20XX
Relevant facts and circumstances
The deceased resided in their main residence until they passed away. The dwelling was never used for investment purposes and was their main residence at the time of their passing.
The dwelling is on land that is less than two hectares in size.
Prior to the deceased passing, one of their children lived in the property with them due to issues outside of their control.
Probate was subsequently granted.
You were the sole executor and beneficiary.
You were unable to dispose of the dwelling for a period of time due to issues outside of your control and health issues in the family.
Once the issues could be resolved, the dwelling was quickly sold, with settlement occurring more than two years after the deceased's death.
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
Income Tax Assessment Act 1997 Subsection 118-195(1)
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