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Edited version of your written advice
Authorisation Number: 1051293429572
Date of advice: 11 October 2017
Ruling
Subject: Deceased estate and the capital gains tax (CGT) main residence
Question
Will the capital gain or loss you make from the sale of your property be disregarded under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes.
Having considered your circumstances and the relevant factors in subsection 118-195(1) of the ITAA 1997, the Commissioner is satisfied that one of the items in column 2 and one of the items in column 3 have been met. 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 into the search bar at the top right of the page.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
The Deceased passed on 19XX.
The Deceased owned a property purchased before 20 September 1985 that was their main residence prior to their passing.
Letters of Administration were granted to Individual A and they were appointed Administrator and Trustee of the estate on 20XX.
An application was lodged in the Relevant Court for a family provision claim by one of the Deceased’s children.
The Child had lived with the Deceased prior to their passing and continued to live in the property until 20XX.
An order of the Relevant Court was made on 20XX that the Child has a right to occupy the property from 19XX to 20XX and that the order be attached to the Letters of Administration.
A contract for sale of the property was entered into which settled on 20XX.
Relevant legislative provisions
Income Tax Assessment Act section 118-195.