Edited version of private advice

Authorisation Number: 1051797246915

Date of advice: 15 January 2021

Ruling

Subject: CGT - main residence exemption - deceased estate

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 purchased the property.

The Deceased purchased the property with a spouse, as a joint owner.

The Deceased divorced spouse and gained sole ownership of the property.

The Deceased passed away.

The property was the Deceased's main residence.

The property was never used for income producing purposes.

The Deceased had a Will.

The Will was executed and appoints the Public Trustee as executor of the estate

Public Trustee renounced to Public Trustee and Guardian (PTG).

PTG lodged Grant of Letter of Administration.

PTG obtained Grant of Letters of Administration.

An agreement amongst beneficiaries for distribution was reached.

The property was valued.

The property was advertised for sale.

An auction was held however the property was passed in.

There were several unapproved structures on the property.

A company was engaged to have the structures approved.

An offer was made on the property.

A contract of sale was entered.

Settlement occurred.

Relevant legislative provisions

Income Tax Assessment Act 1997 subsection 118-195(1)