Private ruling: Deceased estate
Date of advice: 1 December 2025
Published: 27 January 2026
Ruling period: Year ending DD MM 20YY
Date scheme commenced: DD MM YY

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of ITAA 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 deceased main residence was located at XXXX, XXXX (the property), Australia. The property is less than 2 hectares. The deceased resided at the property until the date of their passing. The deceased did not earn any assessable income from the property. At the time of the death, the property was also occupied by their child and grandchild. They have never paid any rent to the deceased. The deceased executed their will (the will) on DD MM 20YY remotely. The will was contested because it was signed remotely, during the COVID-19 lockdown. This method of signing was not legally recognised in XXX at the time. The Supreme Court required multiple requisitions before confirming the validity of the will. This was due to the Covid-19 pandemic and the mandate over lockdown. The executor applied for probate on DD MM 20YY. Probate was granted on DD MM 20YY. The child and grandchild vacated the property on DD MM 20YY. The property was listed for sale on DD MM 20YY. A contract for sale was executed on DD MM 20YY. Settlement of the property occurred on DD MM 20YY. The net proceeds were distributed to the beneficiaries of the Estate in equal shares.

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