Private ruling: Commissioner's discretion - deceased estate
Date of advice: 7 September 2023
Published: 16 October 2023
Ruling period: Year ended XX/XX/20XX | Year ending XX/XX/20XX
Date scheme commenced: XX/XX/20XX

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 XX/XX/20XX leaving a will. As at date of death the Deceased owned a dwelling at XXX, which was their main residence. The Deceased appointed XXX as the Executor of their Will. Probate was granted to the Executor on XX/XX20XX. On XX/XX20XX, a contract was provided to the real estate agent to sell the property. Due to the sensitive circumstances of the Deceased's death, and the necessary disclosure to potential buyers, this resulted in delays in finding a purchaser. A contract was entered into to sell the Property on XX/XX/20XX, with settlement occurring on XX/XX/20XX, which was only 3 weeks outside of the 2-year discretion period. 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