Private ruling: CGT - deceased estate
Date of advice: 22 October 2025
Published: 8 December 2025
Ruling period: Year ended 20 June 20YY
Date scheme commenced: 1 July 20YY

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.

Relevant facts and circumstances: XXX (the spouse) and XXX (the first deceased) purchased the property at XX XX XX on DD MM 19YY as joint tenants. The property is less than 2 hectares. The property is pre-CGT. The property has never been used to produce income and was always the family home. The spouse passed away on DD MM 19YY. The first deceased acquired their spouse's share of the property as the surviving joint tenant. The first deceased passed away on DD MM 20YY. The first deceased and the spouse had one child, the second deceased. The second deceased continued to reside at the property. The second deceased, during their lifetime and occupation of the property, paid for rates, insurance and maintenance of the property. The second deceased passed away on DD MM 20YY. The title of the property was never changed from the second deceased's parents' joint ownership interest. The second deceased was unmarried and had no children. A Grant of Probate for the estate of the second deceased was issued to the legal personal representative (LPR) on DD MM 20YY. On the basis that the second deceased survived the first deceased but later died without administering their estate, the LPR applied for Letters of Administration for the first deceased estate. A Grant of Probate for the estate of the first deceased was issued to the LPR on DD MM 20YY. The property was sold by the LPR for the estate of the first deceased. The property sold on DD MM 20YY, with settlement occurring on DD MM 20YY.

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