Private ruling: Commissioner's discretion - deceased estate
Date of advice: 21 April 2026
Published: 6 July 2026
Ruling period: Year ending DD MM YY
Date scheme commenced: DD MM YY

Ruling: Q1: Will the Commissioner exercise his discretion under section118-195 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: Property is located at Address A. It is on less than 2 hectares. It was the deceased's main residence just prior to their passing and was not used to produce assessable income. In MM YY the deceased separated from their spouse and moved into the Property where their adult child Person A was already residing (for approx. X-X yrs) with their 2 children. In MM YY the deceased was diagnosed with a terminal illness. Their adult child Person B took on a caregiver role at this time. They were a single parent with an infant. On DD MM YY the deceased executed their Will. This named Person B as their executor. They left their car to Person A and then the estate was to be liquidated and divided between their two children Person A and Person B. On DD MM YY the deceased acquired the property in the divorce at value of $X (their ex-spouse had previously owned the property outright). On DD MM YY the deceased passed away. Following the passing of the deceased Person A remained in the property with their two children, Person C and Person D who was over the age of 18. Person A and Person D both had some significantly difficult life experiences over the next 2 years following the passing of the deceased. This meant the property was not vacant until MM YY. Person B was also experiencing some difficult and stressful circumstances. Once vacant Person B could access the property, however it was in a poor and uninhabitable condition. As a single parent and on a pension and working part-time, Person B only undertook essential repairs to make the property suitable for sale. On DD MM YY Person B obtained a quote from a handyman which was the most affordable option available. The repairs were completed over 6 weeks. The property was listed for sale. On DD MM YY it sold for $X. Two offers were received on the same day and the executor accepted a slightly lower offer to secure a faster settlement. On DD MM YY settlement took place, occurring only 6 months over the 2-year period.

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