Private ruling: CGT - deceased estate
Date of advice: 8 October 2025
Published: 24 November 2025
Ruling period: Year ended 30 June 20XX
Date scheme commenced: DD MM YYYY

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 to dispose of your ownership interest in the dwelling and disregard the capital gain or capital loss 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 XX X 20XX. The property is less than 2 hectares. The deceased acquired joint ownership interest with their spouse in the property on XX X 20XX. The deceased's spouse passed away on X X 20XX. The property was always their main residence and never used to produce income. The deceased acquired full ownership of the property through a Survivorship application. The deceased left a will. You have provided a copy of the will. There are X beneficiaries of the estate. Probate was made through the Supreme Court portal as a self-represented person. An account was set up on the Supreme Court portal. The application for Probate was submitted. Probate was granted. The title of the property was transferred into the names of the executors. The child of the deceased, lived with deceased rent free for approximately XX months prior to the deceased passing. The child of the deceased lived in the property after the deceased passed, rent free, until XX X 20XX. The deceased's child did not have a right to reside under the will. The deceased's child has been unable to work since 200X. The deceased's child was granted a Disability Support Pension on X X 200X. The deceased's child fell which caused serious injury in 200X. The deceased's child has been unable to drive or work for over XX years. The family brought the deceased's child and their family to Y in 200X. The Trustees felt morally obliged to allow the deceased's child to occupy the property and believed this was the deceased's wish. The family searched unsuccessfully for suitable rental accommodation for the deceased's child. The search for suitable accommodation was impacted by Covid. The deceased's child needed a single level property with no steps, mobility scooter access, accessible shower not over a bath. In X 20XX a relative offered to invest in a suitable property for the deceased's child to occupy. It took X months to find a property that suited the deceased's child access needs. The deceased's child moved out of the property on XX X 20XX. The property was advertised for sale mid-X 20XX. A contract of sale was signed on XX X 20XX. Settlement took place on XX X 20XX.

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