Australia Tax Agency Updates Practical Compliance Guideline on Capital Gains Tax Exemption for Inherited Dwellings

The Australian Taxation Office April 1 updated Practical Compliance Guideline No. PCG 2019/5, on the main residence exemption for capital gains arising from sales of inherited dwellings. Topics covered include: 1) the nonrecognition of capital gains or losses from transferring ownership interests in a dwelling acquired by inheritance within two years of the decedent’s death; 2) the Commissioner’s discretion to extend the two-year period, and the factors considered when exercising discretion; 3) the safe harbor compliance approach treating the discretion as exercised if specific criteria are met, with no discretion request needed for disposals made between two years and 18 ...