Private ruling: Commissioner's discretion - deceased estate
Date of advice: 11 May 2026
Published: 20 July 2026
Ruling period: Year ending DD/MM/20YY
Date scheme commenced: DD/MM/20YY

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 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's discretion can be found by searching ato.gov.au for 'QC 66057'.

Relevant facts and circumstances: On DD/MM/20YY, the deceased passed away, leaving a will. The will appointed the deceased's spouse (Person A) as executor. The will granted a life occupancy to Person A. At date of death, the deceased owned a dwelling at XXX (the property). The deceased acquired the property in 20YY. The property was the deceased's main residence at time of death and was not used to produce assessable income. The property is less than X hectares. On DD/MM/20YY, probate was granted to Person A. In MM/20YY, it was deemed that Person A could no longer live independently and they moved into residential care. The property remained vacant until settlement. In MM/20YY, the deceased's child (Person B) contacted Lawyer A seeking legal representation to appoint a new executor for the estate and assist in selling the property. In early MM/20YY, it was deemed Person A no longer had capacity to continue acting as the executor of the deceased's estate. On DD/MM/20YY, Person A died without having finalised the administration of the estate. Person C is a child of Person A and the executor appointed under Person A's last Will and Testament dated DD/MM/20YY. By the chain of representation Person C had the right and title to the probate and execution of the will of the deceased. On DD/MM/20YY, Lawyer A first sought the renunciation of Person C in relation to the deceased's estate. On DD/MM/20YY and DD/MM/20YY, Lawyer A sent further letters requesting the renunciation of Person C in relation to the deceased's estate. On DD/MM/20YY, Person D was appointed as Person B's Enduring Power of Attorney to deal with matters pertaining to the estate, as Person B resides outside of Australia. On DD/MM/20YY, Person C signed a renunciation and consent, renouncing all their rights and title to probate and execution of the deceased's will. On DD/MM/20YY, Person D made an application to the Supreme Court for Letters of Administration. On DD/MM/20YY, Letters of Administration De Bonis Non were granted to Person D. On DD/MM/20YY, a transmission application was filed with the relevant authority to have the deceased's property transferred into the name of Person D in their capacity as the administrator of the estate. In MM/20YY, the transmission application was accepted and property transferred to Person D as administrator of the estate. On DD/MM/20YY, Person D in their capacity as the administrator of the estate instructed Real Estate Company A to sell the deceased's property. On DD/MM/20YY, a contract of sale was signed. On DD/MM/20YY, settlement occurred.

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