Private ruling: eceased estates
Date of advice: 4 July 2025
Published: 1 September 2025
Ruling period: Year ended 30 June 20XX
Date scheme commenced: DD MM YYYY

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 ownership interest in the dwelling and disregard the capital gain or capital loss you made on the disposal? | A1: Yes. The ruling has considered the delay in disposing of the property is attributed to the complexity of the estate. These circumstances are considered to fall within the scope of the Practical Compliance Guideline PCG 2019/5 - Capital gains tax and deceased estates - the Commissioner's discretion to extend the 2-year period to dispose of dwellings acquired from a deceased estate , under the safe harbour provisions. 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: You are the executor and trustee of the estate. On DD MM YYYY, the deceased purchased a dwelling as joint tenants with their spouse. On DD MM YYYY, the deceased's spouse passed away leaving the sole ownership in the property to the deceased. On DD MM YYYY, the deceased passed away. The trustee of the estate has provided supporting information that the administration of the estate was delayed due to complexities with the estate and circumstances outside their control between DD MM 20XX and DD MM 20XX. On DD MM 20XX, a contract for the sale of the property was entered into. On DD MM 20XX, settlement of the property occurred.

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