Private ruling: Deceased estate - 2-year discretion
Date of advice: 14 May 2026
Published: 20 July 2026
Ruling period: Year ending 30 June 20YY
Date scheme commenced: 1 July 20YY

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of Income Tax Assessment Act 1997 (ITAA 1997) to allow an extension of time for you to dispose of your X% ownership interest in the dwelling and disregards 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 and their spouse acquired a property after 20 September 1985. Each of them held a 50% interest as tenants in common and claimed the property as their main residence. In MM YYYY, the spouse's child moved in the property to care for them due to their age. On DD MM YYYY, the deceased moved into a nursing home. On DD MM YYYY, the deceased passed away. On DD MM YYYY, probate of the deceased's estate was granted to the spouse and the deceased's child - a foreign resident. Under the deceased's Will, the deceased gave the spouse the right to reside in the property but not the right to rent it out. On DD MM YYYY, the spouse moved into nursing home. The spouse's child continued reside in the property. From DD MM YYYY to DD MM YYYY, the spouse's child started to pay rent to the spouse to assist with the nursing home fees. The spouse's child did not pay rent to the deceased estate. On DD MM YYYY, the spouse passed away. On DD MM YYYY, probate of the spouse's estate was granted to the spouse's child. On DD MM YYYY, the deceased's child granted the spouse's child a Power of Attorney to act on their behalf in the estate of the deceased. Following this grant, the spouse's child made independent decisions regarding the sale of the property. On DD MM YYYY, the spouse's child signed the contract of sale of the property On DD MM YYYY, settlement of the property occurred.

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