Private ruling: Commissioner's discretion - deceased estate
Date of advice: 9 May 2024
Published: 17 June 2024
Ruling period: Year ending XX June 20XX
Date scheme commenced: XX July 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 to the settlement date 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 discretion can be found by searching ato.gov.au for QC 66057.

Relevant facts and circumstances: Client A (the deceased) passed away on XX month 20XX. The deceased acquired the property after XX month 19XX. The property was originally purchased by the deceased on the XX month 20XX for $XX, XXX The property was the main residence of the deceased just before they passed away and not used to produce assessable income at that time. The property was situated on less than XXX hectares of land (XXX sqm). The deceased died intestate. During the first years after the deceased's death, more than XX months was spent addressing the complexity of the deceased estate, delaying the completion of the administration of the estate. The issues included dealing with Office A, issues with guardianship of a relative of the deceased, waiting for advice from Solicitor A, and the initial rejection by the court of the application for grant of Letters of Administration. The Letters of Administration were granted on XX month 20XX. A Real Estate agent was requested to perform a market appraisal on XX month 20XX which was completed on XX month 20XX. The title was transferred into the name of Trust A on XX month 20XX. The first listing was month 20XX on Website A and had limited interest. The property was then advertised on Website B in June 20XX which provided solid interest from XX parties. The property went to Auction on XX July 20XX and sold for $XX, XXX settlement occurred on the XX August 20XX.

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