Private ruling: Deceased estate
Date of advice: 10 April 2026
Published: 29 June 2026
Ruling period: Period ending DD MM YY
Date scheme commenced: DD MM YY

Ruling: Q1: Will the Commissioner exercise the discretion contained in section 118-195 of the Income Tax Assessment Act 1997 to allow an extension of time for the executors to dispose of the property and to disregard any capital gain or capital loss from the sale? | A1: Yes. The estate was complex to administer due to multiple factors including the deceased dying overseas and having no Australian next of kin, the informality of the Will, the need to engage with multiple law firms in several countries, and the beneficiaries being located overseas in several different countries. These factors delayed the process of obtaining probate significantly. However once probate was obtained, steps were quickly made towards listing and selling the property.

Relevant facts and circumstances: In YY the deceased emigrated to Australia from Country A. They were a citizen and tax resident of Australia. On DD MM YY they acquired the property at address A as joint tenant with their spouse. The property was on less than 2 hectares. On DD MM YY they acquired their spouse's share of the property on their passing. The deceased regularly travelled to Country A to visit family. Each visit was short term, and they stayed with extended family while over there, having no property of their in own in Country A. On DD MM YY the deceased passed away in Country A. On DD MM YY the executors engaged legal representatives both in Country A (Law Firm A) and in Australia (Law Firm B). The requirement for coordinated communication between executors, beneficiaries and legal representatives across international boundaries was a significant contributor to the delay in sale of the property. This was outside of the executor's control. On DD MM YY the property was listed for sale. On DD MM YY a contract of sale was signed. On DD MM YY settlement on the property took place.

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