Private ruling: Commissioner's discretion - deceased estate
Date of advice: 25 June 2024
Published: 5 August 2024
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 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 DD MM 20YY. The dwelling is located at XXXX (the property). The deceased acquired the property after 20 September 1985. The property was the main residence of the deceased just before they passed away and was not used to produce assessable income at that time. The property was situated on less than two hectares of land. The will of the deceased provided a sibling a life tenancy in the property. The sibling granted the life tenancy passed away on DD MM 20YY. When preparing the property for sale, executors of the deceased located valuable items belonging to the sibling. Multiple attempts were made to locate a will for the sibling, however one could not be located. A real estate agent was engaged in MM 20YY. The property was advertised on DD MM 20YY for sale. The property was held for sale via auction on DD MM 20YY and settled on DD MM 20YY. The property was not used to produce assessable income at any time between the date the deceased passed away and when the property was sold.

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