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Edited version of private advice
Authorisation Number: 1051652402420
Date of advice: 31 March 2020
Ruling
Subject: An extension to the two year exemption from capital gains tax for a deceased main residence - right to live in the dwelling and many beneficiaries located a long distance away
Question
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?
Answer
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
This ruling applies for the following period:
1 July XXXX to 30 June XXXX
The scheme commences on:
XXXX
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
The deceased owned a property. They acquired the property before 20 September 1985. The dwelling at the property (the dwelling) was their main residence at the time of their passing.
Years prior to deceased's passing, one of the beneficiaries of the deceased's estate moved into the dwelling to provide support for the deceased.
The deceased passed away and probate was granted.
The deceased's will allowed one of the beneficiaries the right to continue living in the dwelling for a number of years following deceased's death. The Estate was left to a number of beneficiaries, including children and grandchildren, some who lived interstate and overseas.
There were delays in the transfer of part shares to one of the beneficiaries due to the complexity of the estate and delays to the completion of administration of the estate. The Lands Titles Office completed transfers of property.
The dwelling was not used for income producing purposes from the date of 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
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