Private ruling: CGT - deceased estate
Date of advice: 2 March 2026
Published: 28 April 2026
Ruling period: 1 July 20XX to 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 (ITAA 1997) to allow an extension of time for you to dispose of your ownership interest in the property 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.

Relevant facts and circumstances: The Deceased died on DDMMYYYY (Deceased). The Deceased owned a property in Australia (Property). The Property was less than 2 hectares in size. The Deceased acquired their ownership in the Property upon the death of their spouse on DDMMYYYY. The Deceased lived in the Property as their principal place of residence at their death. The Property was not used for the purpose of producing assessable income at the time of the Deceased's death. The Property has been vacant from the date of death of the Deceased up until the sale of the Property on DDMMYYYY. The Deceased's estate (Estate) was subject to extensive Probate and Family Provision proceedings that commenced on DDMMYYYY. An interim Administrator of the Estate with limited powers was appointed (Administrator). The proceedings were the subject of an appeal which commenced on DDMMYYYY with the judgement issued on DDMMYYYY. The Administration of the Estate could not commence until the proceedings including the Court of Appeal proceedings were determined. A full grant of letters of administration with the Will annexed was granted to the Administrator on DDSMMYYYY which granted the Administrator power of sale for the first time. The Administrator sold the property by way of public auction and entered into a contract of sale of the property on DDMMYYYY. Settlement date for the property was DDMMYYYY.

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