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Edited version of private advice
Authorisation Number: 1051792479169
Date of advice: 22 January 2021
Ruling
Subject: Capital gains tax - main residence exemption
Question
Will the Commissioner allow an extension of time to for you to dispose of your ownership interest in the deceased main residence dwelling and disregard the capital gain you make on the disposal?
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 periods:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The deceased died in 20XX.
The deceased purchased the property in 19XX as sole owner. At the time the property included a single dwelling (Dwelling A).
In the following year a second dwelling (Dwelling B) was constructed to the rear of the property.
Dwelling B was chosen as the deceased's main residence from the time the land upon which it was built was acquired.
Dwelling B continued as the deceased's main residence until death.
The Will provided for a beneficiary to subdivide the property and purchase Dwelling A.
Subdivision approval took several years due to its complex nature. Certification for the subdivision took an additional six months.
The deceased main residence dwelling (Dwelling B), was sold and settled a short time after the subdivision certification.
Dwelling A was dealt with separately. This ruling does not apply to that property sale of Dwelling A.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195