Private ruling: Commissioner's discretion - deceased estate
Date of advice: 16 July 2024
Published: 26 August 2024
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of the Income Tax Assessment Act 1997 to allow an extension of time for you to dispose of your ownership interest in the dwelling 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: The deceased passed away on DD MM 20YY. The dwelling is located at XXXX (the property). The deceased acquired the property before 20 September 1985. 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. The property was situated on less than two hectares of land. Probate was granted on DD MM 20YY. The will of the deceased provided the spouse (Person A) of the deceased a life interest in the property. Person A lived in the property until entering full time care in MM 20YY. The property was thereafter left vacant. Person A passed away on DD MM 20YY. The property was advertised for sale in MM 20YY. The property was sold on DD MM 20YY, with settlement occurring on DD MM 20YY. The property has not been used to produce assessable income at any time between the date the deceased passed away until the date it was sold.

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