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Edited version of private advice
Authorisation Number: 1051524935430
Date of advice: 30 May 2019
Ruling
Subject: Two year exemption from capital gains tax for a deceased main residence
Question
Will the Commissioner exercise the 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 2017 to 30 June 2018
The scheme commences on:
February 2016
Relevant facts and circumstances
The deceased owned a property. The dwelling at the property (the dwelling) was their main residence at the time of their passing.
The dwelling is located on land that is less than two hectares.
The will appointed a number of the deceased's children as executors.
The deceased's Will provided for a number of beneficiaries.
You, as executors were unable to attend to the deceased estate due to:
· Coroner's delay and legal challenges
· Delays in obtaining probate beyond the executor's control
The dwelling was not used for income producing purposes from the date of death until it was sold just outside the two year period.
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