Private ruling: Commissioner's discretion - deceased estate
Date of advice: 26 February 2024
Published: 8 April 2024
Ruling period: Year ending 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 dispose of your ownership interest in the dwelling and disregard the capital gain or loss made on 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 19YY leaving a will. The deceased acquired the property after 20 September 1985. The dwelling on the property was the main residence of the deceased just before they passed away. The property was not used to produce assessable income before or after the date of death. The property was situated on less than two hectares of land. In deceased's will, your parent had a life tenancy subject to payment of rates, taxes, and other outgoings. Certificate of title shows that the life interest in the property was transferred to your parent, then ownership was transferred to yourself and a relative upon your parent's death. Your parent lived in the property from date of the spouse's death until their own death. You and your relative were beneficiaries in equal shares upon surviving your parents by 30 days. The contract for the sale of the property was executed on DD MM 20YY. Settlement of the property occurred on DD MM 20YY, approximately 5 months after your parent's death.

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