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Edited version of your written advice
Authorisation Number: 1051512346650
Date of advice: 01 May 2019
Subject: Two year exemption from capital gains tax for a deceased main residence.
Question
Will the Commissioner exercise discretion under 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 will allow an extension of time. Further information about this discretion can be found by searching 'QC 52250' on ato.gov.au
This ruling applies for the following period:
1 July 2018 to 30 June 2019
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
The deceased was the registered proprietor of the Property. The Property was used as their main residence at all times during their period of ownership, and the property was never used for investment purposes.
The will appointed an executrix. The will provided for a life tenancy to one of the beneficiaries, with conditions.
Probate of the last will was granted. The executrix was unable to attend to the deceased estate due to:
● The death of close family members
● Extensive clean up required of the property
● Challenges to the deceased’s will
The property was left vacant and not used for income producing purposes from deceased’s date of death until it was sold.
Settlement of the sale of the Property took place just over 2 years after the deceased’s date of death.
Relevant legislative provisions
Income Tax Assessment Act 1997 Subdivision 115-A
Income Tax Assessment Act 1997 section 102-20
Income Tax Assessment Act 1997 section 118-195
Income Tax Assessment Act 1997 section 104-10