Private ruling: Deceased estate 2-year discretion
Date of advice: 13 February 2026
Published: 30 March 2026
Ruling period: Year ended 30 June 20XX.
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of 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.

Relevant facts and circumstances: The deceased passed away on DD MM 20YY. 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. Following the deceased's death, a relative of the deceased claimed that the deceased had a valid will. The relative also claimed that they were appointed executor of the deceased's will. Following this claim, efforts were made to locate the deceased's will. On DD MM 20YY, a caveat was placed on the property by a relative of the deceased. The relative of the deceased also made a family provision claim. On DD MM 20YY, The Supreme Court of State A advertised that there was no will of the deceased and that you would apply for a grant of Letters of Administration within 14 days of publication. On DD MM 20YY, you placed an additional caveat on the property. On DD MM 20YY, the caveat that you placed on the property was withdrawn. On DD MM 20YY, you were granted Letters of Administration A contract was entered to sell the property on DD MM 20YY, with settlement occurring on DD MM 20YY. The property was vacant from the time that the deceased passed away until it was sold.

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