Private ruling: CGT - deceased estate and disposal of property
Date of advice: 8 August 2025
Published: 27 October 2025
Ruling period: DDMMYY
Date scheme commenced: DDMMYY

Ruling: Q1: Will the capital gain made on the disposal of the residential property be disregard under subsection 118-195(1) of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes, the capital gain made on the disposal of the property by the deceased estate will be disregarded. The reason for this is: • It was the deceased main residence and not used to produce income. • The property was sold within 2 years of the date of death. • The deceased permanently moved back to Australia on DDMMYY and considered to be a tax resident of Australia from this date.

Relevant facts and circumstances: The deceased was born on the DDMMYY in Australia. The deceased grew up in City A in Australia, attending School and later University. The deceased worked in XXX before moving overseas to live and work. The deceased arrived back in Australia on DDMMYY, and the rest of the family arrived in Australia on DDMMYY. The deceased child enrolled in school on XX XXX. The deceased had wound up their business overseas. The deceased terminated their overseas superannuation fund before arriving in Australia. All the members of the family resided at the property in City A in Australia which was the family's main residence and not used to produce income. This property was purchased in YYYY by the deceased as the sole owner. Their intention was to live permanently in City A in Australia as a family. The deceased had continuously kept close contact with Australian friends/relatives since childhood. The deceased suddenly passed away on the DDMMYY. The deceased was an Australian resident for tax purposes at the time of death. Probate was granted to the executor on DDMMYY. The property was sold by the executor of deceased estateto a third party, which settled on the DDMMYY.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 118-195(1)