Private ruling: Commissioner's discretion - deceased estate
Date of advice: 1 September 2025
Published: 27 October 2025
Ruling period: Year ending 30 June 20YY
Date scheme commenced: DD MM YYYY

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'.

Relevant facts and circumstances: In MM YYYY, the deceased acquired a property located at XX XX (the property). On DD MM YYYY, the deceased passed away. The deceased did not have a spouse or partner. The property is less than 2 hectares in size. The property was the deceased's main residence just before they passed away. The property was never used for the purpose of producing income during the deceased's ownership. The executors of the estate could not locate a Will after an extensive search which included: • the deceased's home safe, that was empty • contacting former solicitors and accountants • XXX Guardianship Tribunal confirmed that no Will was held. In MM YYYY, the deceased's relative, contacted solicitors to locate a Will. The solicitors advised they were unaware of the Will. On DD MM YYYY, the deceased's relative travelled overseas to meet XX XX, the deceased's other relative and next of kin under intestacy laws. XX XX provided two signed statements authorising the deceased's relatives in Australia XX and XX to administer the estate and divide it equally. Between DD MM YYYY and DD MM YYYY, numerous court events occurred to obtain the letters of administration. Due to the intestacy of the deceased's estate, it took approximately XX months between the date of death on DD MM YYYY and the granting of letters of administration DD MM YYYY. On DD MM YYYY, letter of administration was granted to the deceased relatives in Australia. On DD MM YYYY, the property was listed for sale. On DD MM YYYY, the property sold. On DD MM YYYY, the property settled.

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