Edited version of private advice

Authorisation Number: 1052124754807

Date of advice: 1 June 2023

Ruling

Subject: CGT - main residence exemption

Question

Will the Commissioner exercise the discretion in section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the two-year period and disregard any capital gain made on the disposal of the property?

Answer

Yes.

Having considered your circumstances and the relevant factors the Commissioner will allow an extension of time. Further information about the Commissioner's discretion can be found by searching ato.gov.au for 'QC 66057'.

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

The property at XXXX was purchased by the deceased in XX 20XX.

The property is less than 2 hectares.

The deceased passed away on XX XX 20XX.

The property was the deceased's main residence at the time of death and never used to produce income.

Due to a relationship breakdown, the executor's partner resided at the property, with their children on a part time basis, from XX XX 20XX to XX 20XX.

A valuation of the property was completed in XX 20XX.

A probate application was lodged on XX XX 20XX. Granting of probate was delayed due to communication difficulties, COVID-19 restrictions and difficulty experienced by the executor in obtaining records.

Probate was granted on XX XX 20XX to the deceased's child.

The property was listed for sale almost 2 years after the date of death.

A contract for sale of the property was signed 2 years and 1 day after the date of death with settlement on XX XX 20XX.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195