| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1052353597089
Date of advice: 23 January 2025
Ruling
Subject: CGT - Main Residence Exemption
Question 1
Can the executors of the deceased estate treat Property B as the main residence of the Deceased by applying the absence provision under section 110-145 of the Income Tax Assessment 1997 (ITAA 1997) for a CGT event?
Answer
Yes.
Question 2
Can the executors of the Estate of the Deceased disregard the capital gain from the CGT event A1 in relation to the disposal of Property B under section 118-195 of the ITAA 1997?
Answer
Yes.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
The Deceased is an Australian resident. The Deceased acquired Property A before 20 September 1985. The Deceased lived in the property for several years until they acquired Property B after 20 September 1985 where they commenced residing in Property B.
The Deceased retained Property A. Property A was never rented or used for any income producing purposes. The Deceased did not change their electoral role from Property A. The Deceased maintained a single PO box in the same city as Property A.
New furniture and household effects were purchased by the Deceased and their spouse when establishing their new home in Property B. All personal effects were always at Property B. They had strong social and community ties in the area. Property B was never income producing or ever intended to be income producing.
Some time prior to the Deceased's passing, their mobility was severely impaired and they spent most of their time at Property A as it was a more convenient location for their care. Overall, they spent more years living in Property B than Property A.
Prior to the Deceased's passing, the executors of their estate applied for and received probate of their will.
At the time of the Deceased's passing, Property A and B were fully furnished and contained all the items that would customarily be found in an individual's home.
Property B was disposed of within 2 years of the Deceased's death resulting in a capital gain.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-145
Income Tax Assessment Act 1997 section 118-195