Private ruling: Commissioner's discretion - deceased estate
Date of advice: 11 March 2025
Published: 19 May 2025
Ruling period: Year ending XX 20XX
Date scheme commenced: XX 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of Income Tax Assessment Act 1997 (ITAA 1997) to allow an extension of time for you to dispose of your ownership interest in 25% of the property and disregards 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 QC66057.

Relevant facts and circumstances: The deceased passed away on XX 20XX. The property size was less than 2 hectares. The deceased acquired the property after 20 September 1985. The property was the main residence of the deceased until the date of death and was not used to produce assessable income at any time. The Will dated XX 20XX, appointed X and Y as the executors and beneficiaries of the deceased estate. The Will also indicated that X, Y receives respectively 75% and 25% share of the estate. The property has been X's main residence since 20XX. On XX 20XX, the probate was granted for X as the executor of the deceased estate. On XX 20XX, Y's solicitor sent X a letter to notice they intended to apply for further provision from the deceased estate. On XX 20XX, the foreshadowed application for further provision filed in Supreme Court. On XX 20XX, X and Y signed the Deed of Settlement, resolving the dispute. The Deed of Settlement required X purchase from Y 25% share of the property by XX 20XX. On XX 20XX, the executor of the deceased estate transferred 25% title of the property to X.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 118-195(1)