Private ruling: Commissioner's discretion - deceased estate
Date of advice: 15 August 2023
Published: 3 October 2023
Ruling period: Year ending 30/XX/20XX
Date scheme commenced: XX/XX/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: On XX/XX/20XX the Deceased acquired a property and lived there as their main residence. The Property consisted of a dwelling and attached land that was less than two hectares in size. The Property was never used to produce assessable income. On XX/XX/20XX the Deceased passed away intestate. The Deceased had been widowed at the time of their death, and left behind one child who is a minor. The child was placed under the care of the Guardians. The child's maternal grandparents removed some items from the Property but no action was taken to administer the Estate. On XX/XX/20XX, the Guardians approached Organisation A about commencing the process of administering the Estate of the Deceased. Organisation A commenced the process of obtaining and preparing the necessary documentation to obtain a grant of administration. On XX/XX/20XX Organisation A advertised the Required Notice of Intention to apply to the Supreme Court for a Grant of Administration of the Estate. In XX/20XX, Organisation A commenced their internal process of preparing the application for a Grant of Administration. This was delayed by the fact that Organisation A were still waiting upon some necessary documentation. On XX/XX/20XX, Organisation A received the documentation and provided same to the Supreme Court. On XX/XX/20XX Letters of Administration were granted to Organisation A. On XX/XX/20XX Organisation A engaged a Real Estate Agent to sell the Property. The Property was sold, with settlement occurring XX years and XX months after the Deceased's date of death. A capital gain was made on the disposal of the Property.

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