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Edited version of private advice
Authorisation Number: 1051796391013
Date of advice: 18 January 2021
Ruling
Subject: Main residence exemption for capital gains tax on deceased estates
This ruling applies to the beneficiaries of the trust and to the trustee and to any future trustees, for as long as the ruling remains current.
Question
Will the Commissioner exercise the discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the 2-year period?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner is able to apply the discretion under subsection 118-195(1) of the ITAA 1997 and allow an extension of time until DD MM YYYY. 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.
This ruling applies for the following periods:
Year ended DD MM YYYY
The scheme commences on:
DD MM YYYY
Relevant facts and circumstances
The Deceased inherited sole ownership of the property from their spouse.
The Deceased passed away.
Probate (of the will) was granted.
The ownership of the house was transferred to the executors of the will.
The property required repairs and maintenance to be fit for sale.
The property was listed for sale.
A contract of sale was entered.
Settlement occurred.
The property was the main residence of the deceased until the time of their death.
The property was never used for income producing purposes.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)