Private ruling: Commissioner's discretion - deceased estate
Date of advice: 24 August 2023
Published: 9 October 2023
Ruling period: Year ended 30 June 2023 | Year ending 30 June 2024
Date scheme commenced: 1 July 2022

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 in early 2020. The deceased acquired the property together with their late spouse before 20 September 1985. The deceased's spouse passed away after 20 September 1985 and the deceased acquired their deceased spouse's ownership of the property under survivorship. 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. Probate was granted on DD MM 20YY. You entered into a contract to sell the property on DD MM 20YY, with settlement occurring on DD MM 20YY. The delay in selling the property occurred due to significant sensitive personal circumstances that were outside of your control. The property was sold shortly after those circumstances were resolved.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 118-195(1)