EV 1051997815947currentnon-binding advice

Main residence exemption

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

1

Will section 118-195 of the Income Tax Assessment Act 1997 operate to disregard the capital gain from the insurance compensation payment after CGT event C1 occurred to the deceased's main residence?

2

Yes, CGT event C1 occurred to the deceased's main residence within two years of death of the deceased, satisfying the requirements of section 118-195 and disregarding the capital gain that arose from the insurance proceeds received for the destruction of the property. This ruling applies for the following period : Year ended 30 June 20XX The scheme commences on: 1 July 20XX

3

The deceased died Within two years of the deceased's death, the property was destroyed The property was the deceased's main residence throughout their ownership period, it was purchased by the deceased after 20 September 1985 The property was insured for an amount, which was paid to you as the executor of the deceased's estate

4

Income Tax Assessment Act 1997 section 118-195