Private ruling: Commissioner's discretion - deceased estate
Date of advice: 16 October 2025
Published: 1 December 2025
Ruling period: 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 (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. Further information about the Commissioner's discretion can be found by searching ato.gov.au for 'QC 66057'.

Relevant facts and circumstances: On DD/MM/20YY, the Deceased passed away, leaving a Will. At date of death, the Deceased owned a Property at XXX which was their main residence and was not used to produce income. The Will appointed you and your spouse as joint executors and trustees. The Property has remained vacant from date of death until settlement. The Property is less than 2 hectares. On DD/MM/20YY, probate was granted to you and your spouse. In MM/20YY, you and your spouse started to clear the Property. The Deceased hoarded lots of metal objects in and around their home and the house was cluttered with paperwork and objects. Several minor repairs around the house became evident at this point, such as leaking toilets. On DD/MM/20YY, you were diagnosed with a serious illness. From MM/20YY until MM/20YY, you attended numerous medical appointments and underwent several treatments. Some treatments required an extended stay in hospital. You were required to rest and gradually ease back into daily tasks, and also required personal care and assistance. Your spouse provided personal care during this period, while also working. You were both unable to devote time to clearing the Property during this time. On DD/MM/20YY, the Property was damaged due to a storm and flooding, which caused the interior of the roof to collapse and cause significant damage to the Property which required repairs. On DD/MM/20YY, the insurer's chosen repairers came out to the Property to assess the storm damage. On DD/MM/20YY, the insurer's damage assessors came to the Property to document and remove the damaged furniture and clean up the debris. During MM/20YY and MM/20YY, two roofing companies attended the Property to provide quotes for the roof repairs. On DD/MM/20YY, the insurance company advised you of the progress of your claims and a list of the damaged items. On DD/MM/20YY, you emailed the roofing company to request details of their Public Liability Insurance and Trade Licence. They responded providing you with the details of their Business Insurance Certificate. On DD/MM/20YY, after medical tests, your spouse entered hospital for surgery. On DD/MM/20YY, you received an invoice from the roofing company requesting a deposit to start the roofing repairs. On DD/MM/20YY, the roofing company started the roof repairs. On DD/MM/20YY, the roof repairs were completed. On DD/MM/20YY, plastering repairs to the ceiling were carried out by the insurers chosen contractors. On DD/MM/20YY, painting of the walls and ceiling was completed. On DD/MM/20YY, you and your spouse started to clear the remaining rubbish and metal from the Property. You filled two skip bins with household rubbish, and two trailer loads of scrap metal. On DD/MM/20YY, your insurers provided an acknowledgement of completion of repairs. On DD/MM/20YY, you underwent additional surgery with a recovery period of several weeks. On DD/MM/20YY, the Property was placed on the market. On DD/MM/20YY, a contract of sale was signed. On DD/MM/20YY, settlement occurred.

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