Private ruling: Commissioner's discretion - deceased estate
Date of advice: 1 August 2025
Published: 13 October 2025
Ruling period: Year ended 30 June 20XX
Date scheme commenced: XX 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of Income Tax Assessment Act 1997 (ITTA 1997) to allow an extension of time for you to dispose of your 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 'QC66057'.

Relevant facts and circumstances: The deceased passed away intestate on XX 20XX. The property was situated on less than two hectares of land. The deceased and ex-spouse purchased the property on 19YY. The deceased acquired the property after 20 September 1985. The property was the main residence of the deceased until the date of deceased's death and was not used to produce assessable income at any time. On XX 20XX, the public trustee received an unclaimed body form from the hospital. The deceased had no next of kin to administer the estate. In XX 20XX, the Public Trustee (PT) began the process of conducting investigation for the estate. The process of locating beneficiaries took an extended period of time. On XX 20XX, PT began the process of selling the property. On XX 20XX, PT applied for Letter of Administration to the Supreme Court. On XX 20XX, the authority was granted. On XX 20XX, the property was discovered being vandalised. The process of fixing the damage through an insurance claim was lengthy. In XX 20XX, a real estate agent was appointed and the contracted of sale was signed. On XX 20XX, the property was settled.

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