| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1051236136190
Date of advice: 9 June 2017
Ruling
Subject: Commissioner's discretion to extend the 2 year main residence exemption period
Question 1
Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA1997) in relation to the property and allow an extension of time?
Answer
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 the 2016/17 financial year. Further information on the relevant factors and inheriting a dwelling generally can be found on our website https://www.ato.gov.au and entering Quick Code QC17195 into the search bar at the top right of the page.
This ruling applies for the following periods:
Year ending 30 June 2017
The scheme commences on:
1 July 2016
Relevant facts and circumstances
The property was acquired after 20 September 1985 by the deceased.
The property was used as her main residence from the date of acquisition.
In 20XX the deceased passed away.
While the deceased had left a Will it was advised the document was an informal one.
This circumstance required an application to the Court for the document to be approved as the Last Will and Testament of the deceased.
The informal will was contested by family members who also made inheritance style claims over the estate.
In 20XX the Court made an Order declaring the formal Will of the deceased made in 20XX was the Last Will and Testament of the deceased.
Subsequent to the order the executor under the will applied for grant of probate.
Probate was granted in 20XX.
The property was placed on the market for sale.
A contract was signed and settlement occurred in 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 118-195