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Edited version of private advice
Authorisation Number: 1051527741189
Date of advice: 17 June 2019
Ruling
Subject: Two year exemption from capital gains tax for a deceased main residence
Question
Will the Commissioner exercise the 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 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 20XX to 30 June 20XX
The scheme commences on:
8 December 20XX
Relevant facts and circumstances
The deceased and pre-deceased partner resided in their main residence until they passed. The property was never used for investment purposes.
The deceased acquired the pre-deceased's interest on their passing/
The property was less than two hectares in size.
Prior to both of the deceased passing, one of their children moved into the property to care for them.
Probate was granted.
The estate was disputed by the beneficiaries, however after some time; they reached an agreement to settle the dispute.
One of the beneficiaries also suffered some health issues.
Shortly after the agreement was reached, the dwelling was put on the market for sale. The dwelling sold, with settlement occurring 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
Income Tax Assessment Act 1997 Subsection 118-195(1)