| Disclaimer This edited version has been archived due to the length of time since original publication.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 private advice
Authorisation Number: 1051493001245
Date of advice: 18 June 2019
Ruling
Subject: Capital Gains Tax for Deceased Estate- 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 extend the 2 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 QC52250 into the search bar at the top right of the page.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased purchased the property as a joint owner.
The deceased inherited the full ownership interest of the property.
The deceased passed away.
Administration of the will was granted to the Executor.
The beneficiary and child of the deceased sued the Executor disputing ownership interest in the property.
A court agreement was reached between all parties, with the will now stipulating that the property could not be sold during the beneficiary's lifetime and the proceeds must be used to purchase another property which is to be occupied by the beneficiary on the same terms and conditions.
The property was sold.
The beneficiary used the property as their main residence for the entire ownership period.
The property was never used for income producing purposes
There were no capital improvements made to the property.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)