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Edited version of private advice
Authorisation Number: 1051764276410
Date of advice: 7 October 2020
Ruling
Subject: Main residence exemption for deceased estate
Question
Will the main residence exemption under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) upon disposal of the property?
Answer
Yes
Having considered your circumstances and the relevant factors, the main residence exemption under section 118-195 of the ITAA 1997 will apply and any capital gain made upon the disposal of the property will be disregarded. 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 periods:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased died on XX August 20XX.
The deceased acquired a share in the property after 20 September 1985.
The deceased acquired the remaining share in the property after 20 September 1985.
The property was the deceased's main residence at the time of death.
The property was disposed of within 2 years from date of death.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195