Private ruling: Commissioner's discretion - deceased estate
Date of advice: 27 September 2023
Published: 13 November 2023
Ruling period: Year ended DD MM 20YY | Year ending DD MM 20YY
Date scheme commenced: DD MM 20YY

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 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 leaving a will. As at date of death the Deceased owned a dwelling at XXX, which was their main residence. The Will appointed Person A as the Executor. At the time of the Deceased's passing, the Executor was full time carer for both the Deceased and their own sibling (Person B), who was unable to care for themselves. They had all lived in the property together since it was purchased in 20YY. On DD MM 20YY, probate was granted to the Executor. The Executor and Person B continued to reside in the property. Over the next few years doctors supported the need that Person B remain in a comfortable, stable environment that they was familiar with. The executor had several of their own health issues from 20YY onwards which impacted their ability to attend to the estate/sale of the property in a timelier manner. On DD MM 20YY, a contract of sale was signed, with settlement occurring on DD MM 20YY. At all material times, the Property was not used for producing assessable income. The Property is less than 2 hectares in size.

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