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Date of advice: 20 March 2018
Edited version of your written advice
Subject: Capital Gains Tax – Main Residence Exemption.
Question
Will the Commissioner exercise his discretion under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997) and extend the 2 year period to XX/XX/XXXX?
Answer
Yes
Having considered your circumstances and the relevant factors, the Commissioner is able to apply his discretion under subsection 118-195(1) of the ITAA 1997 and allow an extension of time until XX/XX/XXXX. Further information on the relevant factors and inheriting a dwelling generally can be found on our website ato.gov.au and entering QC52250 into the search bar at the top right of the page.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
01 July 20XX
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
The deceased passed away.
The property was acquired by the deceased after 20 September 1985.
The deceased used the property as their main residence for the entire ownership period.
The property was never used for income producing purposes.
The deceased died intestate.
There was a delay in obtaining letters of administration as the administrator of the estate changed.
Letters of administration were obtained.
The administrator was unable to take possession of the property after the death of the deceased as the deceased’s spouse was living in the property.
The administrator made numerous attempts to persuade the spouse to vacate the property, including by letter and telephone.
A formal eviction process was commenced after efforts to negotiate with the spouse had failed.
The spouse vacated the property and the administrator immediately took possession of the property and put it on the market. The property sold and settlement occurred on XX/XX/XXXX.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)