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Edited version of your written advice
Authorisation Number: 1051376515206
Date of advice: 23 May 2018
Ruling
Subject: Main residence exemption
Question
Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and allow an extension of time to the two year period?
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.
Further information on the relevant factors and inheriting a dwelling generally can be found on our website 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 period(s)
Year ending 30 June 201X
The scheme commences on
1 July 201X
Relevant facts and circumstances
The deceased died in April 201X.
You have been nominated as the sole executor of the deceased will. Your relative is the sole beneficiary of the deceased estate.
Prior to the deceased death they were very ill and due to their convalescence their property fell into a state of severe disrepair so much so that major renovations were needed to prepare the property for sale.
Just after the deceased passed away your relative became very ill and had to have an operation.
Your relative has had to battle severe infection and hospitalisation for lengthy periods since then. You are the only family member available to support them over this time, this and other family matters has caused significant delays in preparing the deceased property for sale.
The repairs were completed in December 201X and property was listed for sale.
The property was eventually sold with settlement on 17 April 201X.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 118-195