Private ruling: Commissioner's discretion - deceased estate
Date of advice: 15 August 2025
Published: 27 October 2025
Ruling period: Income year ended XX
Date scheme commenced: XX XX 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 property and disregard the capital gain 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: Person A and their spouse, the deceased purchase land and shortly thereafter, constructed a house, at the property prior to 1975. The property was owned as joint tenants and was their main residence until their respective deaths. The property was less than 2 hectares in size. On XX XX 20XX, Person A passed away. Their interest in the property passed to the deceased. On XX XX 20XX, the deceased passed away leaving a will which gifted the property to the taxpayer. At some point the decision was made by you and your sibling, Person B that the property will be sold at the same time as the neighbouring property which had been gifted to Person B. This decision would become difficult due to Person B's ongoing health issues which limited their ability to engage in the process. In XX XX 20XX, you met with a real estate agent to discuss the sale of both properties. In XX XX 20XX, you entered a non verbal agreement with a real estate agent giving them the right to market the property. You also commenced initial discussions with several developers on the sale of both properties resulting in you receiving an offer to purchase from a developer in XX 20XX. On XX XX 20XX, probate was granted. In XX 20XX, Person B underwent major surgery. Given the extensive period of time that the property had been the family home, there were a significant amount of personal items that needed to be sorted through and cleaning required. In XX 20XX, Person B advised that they were too unwell to engage in the sale process and the decision was made that the taxpayer would proceed with selling your property solely. In XX 20XX, the taxpayer engaged a new real estate agent to discuss the sale of the property. It was determined that a fresh marketing and sales campaign would be needed. On XX XX 20XX, the property was sold subject to a development application. On XX XX 20XX,, the development application was approved. On XX XX 20XX, settlement occurred.

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