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Edited version of private advice
Authorisation Number: 5010108310038
Date of advice: 02 October 2024
Ruling
Subject: Deceased estates - main residence exemption
Question 1
Will the Commissioner exercise the discretion under section 118-195 of ITAA 1997 to allow an extension of time for you to dispose of your ownership interest in the dwelling acquired from a deceased estate and disregard the capital gain or capital loss you made on the disposal?
Answer 1
Yes.
The Commissioners discretion applies to the main residence including the X hectares Lot number XX. The remaining X hectares of the property is not covered by the main residence exemption and is subject to capital gains tax.
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:
Financial year ending 30 June 20XX.
The scheme commenced on:
01 July 20XX
Relevant facts and circumstances
This private ruling is based on the facts and circumstances set out below. If your facts and circumstances are different from those set out below, this private 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 on XX XXX 20XX.
The dwelling is located at XXX (the property).
The deceased acquired the property after XX September 19XX.
The property total area is X hectares with the dwelling situated on the nominated two hectares of land for the main residence exemption (MRE) purposes. The property was the main residence of the deceased just before they passed away and was not used to produce assessable income at that time.
COVID-19 restrictions were imposed by the Government in XXX on XX XXX 20XX and remained current in varying degrees until they were lifted on XX XXX 20XX.
Following the grant of probate on XX XXX 20XX the property was listed for sale on XX XXX 20XX and you entered into a contract to dispose of the property on XX XXX 20XX with settlement effective XX XXX 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195