Private ruling: Commissioner's discretion - deceased estates
Date of advice: 6 March 2023
Published: 24 April 2023
Ruling period: The income year ended 30 June 20XX
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 to allow an extension of time for you to dispose of the ownership interest in the property you owned as trustee of the deceased estate 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/YYYY. The deceased inherited the dwelling (the property) after 20 September 1985. 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. The property was situated on less than two hectares of land. The deceased did not have an ownership interest in any other property at the time of their death. COVID-19 impacted the trustee and deceased's family's ability to access the property, distribute the deceased's belongings and prepare the property for sale. Sensitivity of circumstances of surviving relatives of the deceased also delayed the family's ability to prepare the property for sale. The property was sold at auction, with settlement occurring on DD/MM/YYYY. The property remained vacant from the deceased's date of death until settlement. No capital improvements were made to the property from the deceased's date of death until settlement.

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