Private ruling: Commissioner's discretion - deceased estate
Date of advice: 13 April 2026
Published: 22 June 2026
Ruling period: Year ended 30 June 20XX
Date scheme commenced: DD MM 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of 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: The deceased passed away on DD MM 20XX. You provided a copy of the will. The will states: I appoint may child you executor of my will.... I direct my trustee to PAY OR TRANSFER MY residuary estate: 4.1. to you.... The property is situated on less than two hectares of land. The deceased acquired the property on DD MM 20XX. 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. Between DD MM 20XX and DD MM 20XX the town suffered a major flooding event. The property was uninhabitable. On DD MM 20XX you raised an insurance claim. The insurance claim was pending the grant of probate. You engaged solicitors to lodge the application for Probate. On the DD MM 20XX the Solicitor advise the Probate application is drafted and awaiting signature. On the DD MM 20XX you contacted the Supreme Court of State X and are advised a request for additional information has not been answered by the solicitor. On DD MM 20XX Probate is granted. You were not made aware of any particular factor delaying the length of time to obtain Probate and regularly followed up the Solicitor. You have provided copies of emails between yourself and the solicitors dating from DD MM 20XX to DD MM 20XX. On DD MM 20XX the insurer acknowledges receipt of probate. On DD MM 20XX the builder quotation is received. The deceased was handicapped and there were complications due the inability to perform the works with the assessed amount due to customisation for the deceased accessibility requirements. On DD MM 20XX the builder's quotation for additional work was accepted. On DD MM 20XX the builder advises work will commence. On DD MM 20XX the insurance claim is finalised. On DD MM 20XX the sale authority for the property is sent to the real estate agent. On DD MM 20XX you accept the first offer for the property. On DD MM 20XX the offer is retraced as finance fell through. On DD MM 20XX the price for the property is reduced. On DD MM 20XX you engage a real estate agent to lease the property due to the additional costs and maintenance. On DD MM 20XX a 6-month lease is arranged to not inhibit sale. On DD MM 20XX a second offer for the property is received. On DD MM 20XX settlement is confirmed.

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