Private ruling: Commissioner's discretion - deceased estate
Date of advice: 3 December 2025
Published: 27 January 2026
Ruling period: Year ending 30 June 20YY
Date scheme commenced: DD MM 20YY

Ruling: Q1: 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 (subject to the 2-hectare limitation) and disregard the capital gain or capital loss you made on the disposal? | A1: 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'.

Relevant facts and circumstances: In 19YY, the deceased acquired a property. On DD MM 20YY, the deceased passed away. The property is more than 2 hectares in size. The property was the deceased's main residence just before their passing. The property was never used for the purpose of producing income during the deceased's ownership. On DD MM 20YY, probate was granted to you. You have supplied a copy of the deceased's Will, under the Will you were named executrix and trustee. The Will provided you a right to reside at the property for a period of 10 years. After the 10 years right to reside ended you had ongoing legal issues brought about by your sibling. On DD MM YYYY, you appointed a real estate agent for the sale of the property. On DD MM YYYY, you met with your solicitor in regard to queries raised by your sibling's legal representatives regarding estate administration. On DD MM 20YY, your sibling requested that you buy out their share. You made enquires to achieve this, but it was not possible. On DD MM 20YY, the property was listed for sale. Between DD MM 20YY to DD MM 20YY, further disputes were raised by your sibling's solicitor, a caveat was placed on the property. On DD MM 20YY, the contract of sale was signed. On DD MM 20YY, the caveat was removed. On DD MM 20YY, the property settled.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-195