| Disclaimer This edited version has been archived due to the length of time since original publication.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: 1051416485003
Date of advice: 5 October 2018
Ruling
Subject: Extension of the main residence exemption for a deceased estate
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 of the two year period?
Answer
Yes
Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion for up to two hectares of land with your dwelling 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
Year ended 30 June 2018
The scheme commences on
1 July 2017
Relevant facts and circumstances
You are the executor and beneficiary of the deceased.
Probate was granted.
A decision to sell the property was made by you and the other beneficiaries. However the title never came into your procession or control. The property is more than two hectares.
After an exhaustive search at the deceased’s property you were unable to locate the missing Certificate of Title.
It took months of exhaustive search and eventually the Certificate of Title was declared lost by the relevant law firms allowing you to apply for a replacement.
With the festive holidays following, the property was finally put on the market in early 20XX. Further delays were caused due to the unexpected closure of your legal firms.
The property was eventually sold and settled.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195