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Edited version of private advice
Authorisation Number: 1052351090283
Date of advice: 16 January 2025
Ruling
Subject: CGT - deceased estate
Question 1
Can you disregard any capital gain on the disposal of your ownership interest in the property??
Answer 1
Yes.
The conditions for a full main residence exemption on disposal of your ownership interest are:
• just before the deceased's death the property was their main residence and was not then being used for the purpose of producing assessable income
• your ownership ended within 2 years of the deceased's death.
As you have met the above conditions, you can disregard any capital gain on disposal of your ownership interest in the property.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
The deceased acquired a property on or after 20 September 1985.
The property was less than 2 hectares in size.
The deceased was residing at the property just before the time of their death.
In 20XX, the deceased sold XX% of their ownership interest in the property as follows:
• XX% to Person A
• XX% to Person B
• XX% to Person C
The deceased retained a XX% ownership interest in the property.
The deceased passed away several years ago.
The deceased died without a valid will, so you applied to the relevant court for Letters of Administration.
Letters of Administration was granted.
A contract of sale was signed and settlement occurred some months later.
Division of the proceeds from the sale of property occurred as follows:
• XX% to Person A
• XX% to Person B
• XX% to Person C
• XX% to the Estate of the deceased to be divided equally between Person D and Person E.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195
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