Private ruling: Deceased estate
Date of advice: 22 January 2026
Published: 16 March 2026
Ruling period: Period ended DD MM YY
Date scheme commenced: DD MM YY

Ruling: Q1: Will the Commissioner exercise discretion and extend the 2-year period to for the executor to dispose of the deceased's 50% share of the property and disregard any capital gain or capital loss made on disposal? | A1: Yes.Having considered the circumstances surrounding the difficulties experienced in administering the estate, the Commissioner will allow an extension of time.

Relevant facts and circumstances: Person A is identified as the deceased. The property is located at Address A and is less than 2 hectares. In YY the property was acquired by the deceased's parents. One parent passed first, leaving the other parent, Person B, as sole owner. On DD MM YY Person B executed a Will. The Will nominated the Public Trustee as their executor and left the property to their two children Person A (the deceased), and Person C. The Will gave the deceased a right to reside in the property until such time as they passed or married. On DD MM YY Person B passed away. The property was transferred into the name of the Public Trustee. On DD MM YY the deceased executed their Will. The Will named Person D of Law firm A and Person E as executors. The Will left some money to Person C's grandchildren, and monetary gits to several charities and other organisations. While it makes mention of potential shares in real property, it does not mention any specific property. On DD MM YY Person C placed a caveat on the property. On DD MM YY the deceased passed away. They had resided at the property until their passing, and the property was not used to produce assessable income. On DD MM YY the family of the deceased attended Law firm A. Person E had renounced their role as executor leaving Person D as sole executor. On DD MM YY Law firm A contacted the Public Trustee. From DD MM YY to DD MM YY there was communication flowing back and forth between Law firm A and the Public Trustee focused on transferring the property from the Public Trustee to Person D as executor for the estate, and Person C. Some of this delay was due to some unpaid fees by Person C for their share of a fence that was replaced in YY. Person C was reluctant to sell the property outside of the family, but it was eventually acknowledged that neither they nor their family could afford to buy the estate out. On DD MM YY probate was granted to Person D. On DD MM YY Law firm A contacted a real estate agency to provide an assessment on the property. They inspected the property on DD MM YY. On 1DD MM YY they noted: • The property was in a state of clutter due to the deceased never having discarded anything, • There were several ancillary buildings that were full, and one was noted to contain asbestos, • They advised that the property would sell for significantly less if not cleared so the decision was made to demolish all but the original dwelling. On DD MM YY Law firm A met with Person C and their family to discuss the demolition work although this could not commence until the title transfer was completed. From MM YY to late YY the family made efforts to clear the property while the title transfer issue was ongoing. On DD MM YY the title of the property was transferred into the names of Person D as executor for the deceased estate and Person C. In MM YY demolition of the ancillary buildings commenced and was completed in MM YY. In MM YY the property was listed for sale. The contract of sale was signed in MM YY, and settlement occurred on DD MM YY.

Relevant legislative provisions: Section 118-195 of the Income Tax Assessment Act 1995