Private ruling: Capital gains tax 2-year discretion
Date of advice: 5 September 2025
Published: 27 October 2025
Ruling period: Year ended 30 June YYYY
Date scheme commenced: DD MM YYYY

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 the dwelling and disregard the capital gain or capital loss you made on the disposal? | A1: Yes.

Relevant facts and circumstances: The deceased passed away on DD MM YYYY. The deceased and their spouse acquired a property before 20 September 1985. The property size was less than 2 hectares. The deceased became the sole owner of the property after the spouse passed away. The property was the main residence of the deceased and their spouse until their deaths and was not used to produce assessable income at any time. The deceased's Will, dated DD MM YYYY appointed you as the executor and trustee of the Estate if the deceased's spouse had already passed away. On DD MM YYYY, you were granted probate. In YYYY you sought a verbal estimate of the property with a view to selling it. Sometime between YYYY and YYYY a beneficiary moved into the property without your knowledge, while they built their own residence. The beneficiary used the property as their main residence from after the deceased passed away until shortly before the sale of the property. As far as you are aware, the beneficiary never used it to produce income. Due to the beneficiary's significant XXX XXX challenges, the relationship deteriorated to the extent that meaningful communication was no longer possible. This breakdown in communication materially impeded efforts to coordinate the sale of the property. The beneficiary also had significant health issues. Additionally, during the relevant period, you were affected with health conditions, which further contributed to delays and complications in progressing the sale. You consulted a lawyer who was unable to progress the sale. You consulted a real estate agent and this led to the sale of the property. The property was sold at auction on DD MM YYYY. Settlement occurred on DD MM YYYY. The beneficiary vacated the property for the sale, just before the sale date, but you are unaware as to their whereabouts.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 section 149-10