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Edited version of your written advice
Authorisation Number: 1051305777867
Date of advice: 7 November 2017
Ruling
Subject: A deceased estate and the capital gains tax (CGT) main residence exemption
Question
Will the Commissioner exercise the discretion in section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the main residence exemption to 20XX?
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 October 20XX. 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 2018
The scheme commences on:
1 July 2017
Relevant facts and circumstances
Your parent passed on 20XX.
You and your sibling were appointed as Executors of your parent’s estate by way of probate granted over their Will on 20XX.
There was a delay as the other Executor did not present the Will to the Court for an extended period of time; you advised the other Executor that if they did not present the Will you would start legal proceedings.
On 20XX the other Executor lodged a family provision application with the Court.
This application was resolved by way of a deed of settlement between the parties, ratified by the Court, on 20XX.
Clear title of the property was transferred to your sole name on 20XX.
A contract of sale was entered into over the property which settled on 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195.