Private ruling: Deceased estates - pre-CGT
Date of advice: 22 September 2025
Published: 1 December 2025
Ruling period: 20YY
Date scheme commenced: DD MM 20YY

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of ITAA 1997 to allow an extension of time for you to dispose of your ownership interest in the dwelling located at Property 1 and disregard the capital gain or capital loss you made on the disposal? | A1: Yes | Q2: Will the Commissioner exercise the discretion under section 118-195 of ITAA 1997 to allow an extension of time for you to dispose of your ownership interest in the dwelling located at Property 2 and disregard the capital gain or capital loss you made on the disposal? | A2: Yes

Relevant facts and circumstances: The deceased passed away on DD MM 20YY. The first dwelling is located at Property 1. The second dwelling is located at Property 2. The third dwelling is located at Property 3. The fourth dwelling is located at Property 4. The deceased acquired Property 1 before 20 September 1985. The deceased acquired Property 2 before 20 September 1985. Property 1 was not the main residence of the deceased just before they passed away and was used to produce assessable income at that time. Property 2 was not the main residence of the deceased just before they passed away and was used to produce assessable income at that time. Property 1 was situated on less than two hectares of land. Property 2 was situated on less than two hectares of land. Probate was granted on DD MM 20YY. There were 2 people named as joint executors. The deceased wrote a will on DD MM 20YY. Property 1 and Property 2 are listed as assets under the residue of the estate. The spouse of the deceased wrote a Will on DD MM 20YY. The spouse of the deceased passed away on DD MM 20YY. Probate was granted for the estate of the deceased's spouse on DD MM 20YY. 2 people were appointed as joint executors, 1 of these executors was also the executor of the deceased's estate. From the date of the death until the properties were sold some years later there were legal issues between the executors, beneficiaries and other related parties. On DD MM 20YY there were court orders to sell the properties On DD MM 20YY a contract of sale was entered in to for Property 1. On DD MM 20YY a contract of sale was entered in to for Property 2. On DD MM 20YY Property 1 was settled. On DD MM 20YY Property 2 was settled.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 118-195 | Income Tax Assessment Act 1997 section 149-10