Private ruling: Commissioner's discretion - deceased estates
Date of advice: 17 November 2022
Published: 16 January 2023
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the dwelling and disregard the capital gain or 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 legislative provisions: Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 subsection 118-120(3)


Relevant facts: The deceased acquired an ownership interest in a dwelling | The deceased passed away passed away on XX XX 20XX. | The dwelling was the main residence of the deceased throughout their ownership period. | The dwelling has never been used to produce assessable income. | The land area is less than 2 hectares in size. | The deceased's Will provided their child A (child A) a right to reside in the dwelling during their lifetime. | The will also provided that after either the passing or termination of the life interest of child A, the absolute use and enjoyment was bequeathed to the deceased's other children, child B and child C. | Child A continued to occupy the dwelling until XX XX 20XX when the life interest was terminated. This occurred after a period of time child A spent in hospital. It was determined that child A would no longer be able to look after themselves after discharge from hospital. | Child A is to be transitioned from hospital to an aged care facility once a place becomes available. | The dwelling was prepared for sale and placed on the market for sale. | Settlement for the sale occurred A short time later.