Edited version of private advice

Authorisation Number: 1052400294680

Date of advice: 05 June 2025

Ruling

Subject: CGT - main residence exemption

Question 1

Will the Commissioner exercise the discretion under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) to allow an extension of time for you to dispose of your ownership interest in the dwelling and disregard the capital gain or capital loss you made on the disposal?

Answer 1

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 ending 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

In approximately 19XX, the deceased purchased a property.

The Property's land area is less than 2 hectares.

On XX XX 20XX, the deceased passed away leaving a will.

The deceased occupied the property from purchase to the date they died as their principal place of residence, and the property was never income producing during the period of ownership.

The will provided for a beneficiary, Person A, a right of residency to live in the Property for as long as they wished.

Person A lived in the Property from the date the deceased died until XX XX 20XX and the property was not used to produce income during this period.

Person A did not own any other properties from XX XX 20XX to XX XX 20XX.

On XX XX 20XX, Person A moved out of the Property.

On XX XX 20XX, the executor signed a contract for sale of the Property.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195