Private ruling: Commissioner's discretion - extend the two year time limit to dispose of a dwelling
Date of advice: 23 December 2025
Published: 9 February 2026
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 (ITAA 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' . This private ruling applies for the following period Year ending 30 June 20xx The scheme commenced on: 1 July 20xx


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


Relevant facts: The deceased owned a dwelling. (The dwelling). | The dwelling was acquired in 20xx and was the deceased's main residence. | The dwelling remained vacant and was not used to produce assessable income. | The land size is less than 2 hectares. | A dispute arose between beneficiaries of the deceased in relation to the Will. | In xx 20xx an application for a Grant of Letters of Administration was lodged. | A beneficiary lodged a caveat in relation to the administration of the estate in xx 20xx. | Legal proceedings commenced in xx 20xx. | Further legal proceedings were required to resolve the dispute, and these commenced on xx xx 20xx and were ultimately resolved on xx xx 20xx with a final settlement of the dispute on xx xx 20xx. | The dwelling was listed for sale on xx xx 20xx. | On xx xx 20xx a contract for the sale was executed. | Settlement took place on xx xx 20xx.