Edited version of private advice

Authorisation Number: 1052243346001

Date of advice: 24 April 2024

Ruling

Subject: CGT - deceased estate and main residence exemption

Question

Will any capital gain or capital loss from the disposal of your partial ownership interest in the property be disregarded under section 118-195 of the Income Tax Assessment Act 1997?

Answer

Yes.

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commenced on:

XX YYYY 20ZZ

Relevant facts and circumstances

Person A owned a property.

Person A passed away on X, and in their Will, they left the property in equal shares to Person B, Person C and Person D as tenants in common.

Person D (the deceased) acquired a partial ownership interest in the property.

The deceased passed away and Person A was appointed administrator of the deceased's estate.

In the deceased's Will, they bequeathed a partial share of their partial ownership interest in the property to an organisation, forcing the administrator to sell the property.

The property has been sold and settlement is on XX YYYY 20ZZ.

The deceased lived at the property with their parents for a substantial time before the death of Person A. After the death of Person A, the deceased continued living at the property until they passed away.

The property was the main residence of the deceased from the date they started living at the property to when they passed away.

The property has never been rented out.

The land on which the property is on is less than 2 hectares.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195