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Edited version of private advice
Authorisation Number: 1052122847078
Date of advice: 26 June 2023
Ruling
Subject: Deceased estate - 2-year discretion
Question 1
Are the buildings considered a single 'dwelling' as defined in section 118-115 of Income Tax Assessment Act 1997?
Answer
Yes.
Having considered your circumstances and the relevant factors the Commissioner is satisfied that the buildings are a single dwelling as they are used together as one place of residence or abode.
Question 2
Does the adjacent land satisfy section 118-120 of Income Tax Assessment Act 1997?
Answer
Yes.
Having considered your circumstances and relevant factors the Commissioner is satisfied that the identified adjacent land is an extension of the main residence.
Question 3
Does the main residence exemption apply to disregard any capital gain made on the disposal of the property under section 118-195 of Income Tax Assessment Act 1997?
Answer
Yes.
Having considered your circumstances and relevant factors the Commissioner is satisfied the any capital gains can be disregarded.
This ruling applies for the following period:
Year ending 30 June XXX
The scheme commenced on:
DD/MM/YYYY
Relevant facts and circumstances
History
On DD/MM/YYYY the deceased passed away leaving a Will.
The deceased had acquired the property several years ago.
The property was less than 2 hectares in area.
The property was the deceased's main residence just before their death and was not used to produce income at that time.
On the DD/MM/YYYY probate of the deceased's Will was granted.
Property
The property has a single continuous driveway, singular mailbox and no internal fencing.
The property comprises of X lots over X titles.
There are X houses situated over the lots with vacant land, which already existed on the property when the deceased inherited it.
On DD/MM/YYY the property was sold.
Commonality between Lots
The lots were connected by a common boundary line, with no internal fencing.
Access to the property is via one lot, with the driveway extending through the property and exiting via another lot.
The houses are approximately X metres apart.
The deceased maintained all lots and was named on the electricity bills.
The deceased treated the houses as a single property at all times prior to her death.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 118-110
Income Tax Assessment Act 1997 section 118-115
Income Tax Assessment Act 1997 section 118-120
Income Tax Assessment Act 1997 section 118-125
Income Tax Assessment Act 1997 subsection 118-130(2)
Income Tax Assessment Act 1997 subsection 118-130(3)
Income Tax Assessment Act 1997 section 118-195