Private ruling: Deceased estate - 2 year discretion
Date of advice: 6 August 2025
Published: 13 October 2025
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 passed away on XX XX 20XX. | The deceased owned a dwelling. (The dwelling) | The deceased acquired the dwelling as joint tenants with person A. (Person A) | Person A passed away in XX 19XX and the deceased acquired person A's share in survivorship. | The dwelling is situated on land less than 2 hectares in size and was the deceased's main residence prior to passing away. | The dwelling has not been used to produce assessable income. | The Will of the deceased provided a right to reside in the dwelling to their spouse for their lifetime. (The spouse) | The spouse was also entitled to the rest and residue of the estate of the deceased and as they survived the deceased the funds from the sale of dwelling form part of their estate. | The spouse continued to reside in the dwelling. | The spouse passed away on xx xx 20xx. | Contact was made with the executors of the estate on xx xx 20xx. | On xx xx 20xx signed instructions were received and sell instructions to dispose of the dwelling were approved on a short time later. | The dwelling was listed for sale in xx xx 20xx. | A contract for the sale of the dwelling was signed on xx xx 20xx and settlement took place on xx xx 20xx.