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Edited version of private advice
Authorisation Number: 1052018102599
Date of advice: 5 August 2022
Ruling
Subject: CGT - deceased estates
Question
Will you be entitled to disregard a capital gain from the sale of the property to the extent it relates to the area in excess of two hectares?
Answer.
No.
You can apply the main residence exemption to whichever area of land you choose in addition to the land on which your dwelling is situated. However, the total of the land including the land on which the dwelling is situated must not exceed 2 hectares.
Further information regarding the two-hectare limitation can be found by searching ato.gov.au for 'QC 66037' and the legal database on ato.gov.au for Taxation Determination TD 1999/67. Other information about inherited assets and capital gains tax can be found by searching ato.gov.au for 'QC 66052'.
This private ruling applies for the following period:
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts
The deceased passed away.
The deceased acquired with their spouse prior to 20 September 1985.
The deceased acquired their spouse's interest in the property after 20 September 1985 when they passed away.
The property is approximately greater than 2 hectares in size.
The property was the deceased's main residence.
The executor will dispose of the property.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195
Income Tax Assessment Act 1997 section 118-115
Income Tax Assessment Act 1997 section 118-120