Private ruling: Commissioner's discretion - deceased estate
Date of advice: 9 January 2026
Published: 2 March 2026
Ruling period: Year ending XX 20XX
Date scheme commenced: XX 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of Income Tax Assessment Act 1997 (ITTA 1997) to allow an extension of time for you to dispose of your ownership interest in the dwelling and disregards 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 'QC66057'.

Relevant facts and circumstances: The property is situated on less than 2 hectares of land. The deceased and ex-spouse acquired the property after 20 September 1985. In 20XX, the deceased acquired 100% ownership of the property by survivorship. The property was the main residence of the deceased until the date of deceased's death and was not used to produce assessable income at any time. The Will indicated X as the executor and trustee of the deceased estate. On XX 20XX, the probate was granted for X as the executor of the deceased estate. X was diagnosed with prostate cancer in XX 20XX and commenced treatment in late 20XX. X's spouse also has significant health issues and is wholly dependent on X for care. In early 20XX, X attended to the property to prepare to place it on the market. Due to the property poor condition and substantial damage, the property required repair works in order to attract purchaser. On XX 20XX, the property was first placed on the market. On XX 20XX, it was the date for first auction for sale. Following this unsuccessful auction, the property was converted back to private sale. On XX 20XX, X signed the contract of sale of the property. On XX 20XX, the property sale settled.

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