Private ruling: Commissioner's discretion to extend the two year time limit to dispose of a dwelling
Date of advice: 19 August 2025
Published: 27 October 2025
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 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' . This private ruling applies for the following period Year ending 30 June 20XX The scheme commenced on: 1 July 20XX


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


Relevant facts: The deceased passed away on XX XX 20XX. | The deceased owned a dwelling. (The dwelling). | The dwelling was acquired in 20XX. | The dwelling was the main residence of the deceased and was never used to produce assessable income. | The land size is less than 2 hectares. | The deceased passed away intestate. | The deceased did not have any children. | The deceased was survived by a number of siblings including (you). | The deceased was diagnosed with a medical condition. | The deceased relocated to another state to be closer to family in 20XX. | The deceased, prior to relocating, was disorganised with financial affairs and held very little documentation. | The deceased's personal effects were sent to an unknown address and were unable to be located. | You were able to obtain the deceased's death certificate in 20XX and began the process of obtaining relevant details to begin the process of administering the estate. | You contacted the Supreme Court for advice in relation to administering the estate and were advised that you were able to do so without the need for a solicitor. | You attempted to insure the property. However, as the property was still owned by the deceased you were unable to do so. | You incurred expenses in maintaining the dwelling including repairs and maintenance. You attended the dwelling on a number of occasions in 20XX and 20XX to sort out break ins to the dwelling and to secure the dwelling. | You and your siblings engaged the services of a solicitor on XX XX 20XX as the estate was proving more difficult than was first envisaged. | You were unsure of the deceased's marital status at the time of death. You were aware that the deceased had been married in 19XX and that the marriage had broken down after X years. You were aware that the deceased and their spouse were not in contact from then on. | Searches were undertaken and there was no record of a divorce. After lengthy enquiries it was discovered that the deceased's spouse, had not been legally married to the deceased. Their first marriage was not decree absolute until a period of time after their marriage. This process took a lengthy period of time to resolve. | A copy of the decree absolute was provided to you in a meeting on XX XX 20XX. | The result of the decree absolute was that you could now apply for letters of administration so that you could administer the estate. | Letters of administration was granted to you on XX XX 20XX. | You were diagnosed with Covid in XX 20XX and are currently undergoing medical tests as you have suffered from memory loss and confusion. | The dwelling was listed for sale and a contract was entered into on XX XX 20XX. | Settlement took place on XX XX 20XX