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Edited version of private advice
Authorisation Number: 1051810837758
Date of advice: 8 March 2021
Ruling
Subject: Income tax - capital gains tax - deceased estate - main residence exemption
Question
Will the Commissioner exercise the discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the two-year period?
Answer
Yes.
Having considered your circumstances and the relevant factors, the Commissioner is able to apply the discretion under subsection 118-195(1) of the ITAA 1997 and allow an extension of time. 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.
This ruling applies for the following periods:
Year ended DD MM YYYY
The scheme commences on:
DD MM YYYY
Relevant facts and circumstances
Before 20 September 1985, you and your parent purchased a property.
Your parent obtained 72% ownership interest in the property.
You obtained 28% ownership in the property.
Your parent passed away.
Upon the death of your parent, you inherited an additional 36% ownership interest, totalling 64% ownership interest.
Upon the death of your parent, your sister inherited 36% ownership interest of the property.
You sold the property.
You have used the property as your main residence.
The property has never been used for income producing purposes.
Covid-19 delayed the disposal of the property.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)
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