Private ruling: Deceased estate - 2-year discretion
Date of advice: 20 April 2026
Published: 13 July 2026
Ruling period: Year ended D M 20XX
Date scheme commenced: D M 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 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: On D M 20XX the deceased passed away. Probate was delayed as the deceased's spouse will needed to be finalised first. Your solicitor advised you could list the property but not sell it until probate was granted. On D M 20XX the property was listed for sale. On D M 20XX Probate was granted. You provided a copy of the deceased's will which states: Information provided The property is less than 2 hectares. The deceased acquired the property on D M 19XX. The property was the main residence of the deceased and was not being used to produce assessable income. A beneficiary under the will, was a resident of the property from the time the deceased purchased the property until the property was sold. The property was sold by the executors of the estate. No renovations or repairs were carried out on the property. There was a lack of interest from buyers. The contract of sale was signed on D M 20XX. The purchaser required a X-month settlement period. The property settled on D M 20XX.

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