Private ruling: Commissioner's discretion - deceased estates
Date of advice: 20 February 2023
Published: 11 April 2023
Ruling period: The income year ending 30 June 20YY
Date scheme commenced: 1 July 20YY

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 property before 20 September 1985. The property was the deceased's main residence. The property was situated on less than two hectares of land. The sensitivity of circumstances of a surviving relative of the deceased, who was also a beneficiary of the deceased's will, delayed the disposal of the property. The deceased acknowledged their relative's sensitive circumstances in their will. The property was sold as soon as practically possible after the circumstances were resolved. No renovations or improvements were undertaken on the property between the deceased's date of death and settlement.

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