Private ruling: Commissioner's discretion - deceased estate
Date of advice: 15 April 2026
Published: 29 June 2026
Ruling period: Year ending 30 June 20YY
Date scheme commenced: DD MM 20YY

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of the 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. 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: On DD MM 20YY, the deceased acquired a property located at XXX XXX (the property) for $XXX. On DD MM 20YY, the deceased passed away. The property is less than 2 hectares in size. The property was the deceased's main residence just before their passing. The property was never used for the purpose of producing income during the deceased's ownership. The deceased passed away intestate. The deceased was divorced and was not in a relationship at the time of their passing. The deceased's child was not made aware of the deceased's passing until three years after their death. At that time, the deceased's child received correspondence from a solicitor acting on behalf of the deceased's sister, XXX. XXX requesting that the deceased child disavow their rights under intestacy rules. The deceased's child was not agreeable to this proposal. On DD MM 20YY, the deceased's child applied for and was granted letters of administration by the Supreme Court. The deceased's child promptly initiated the necessary inquiries and undertook all requisite steps to list the property for sale. The property was subsequently sold within XX months. Reason for delay The delay in the sale of the property was due to family conflict and issues with contracts of sale of the property. The property was sold a few months after the 2-year period. Upon eventual notification of their interest in the estate, the administration of the estate was impeded by a lack of information about the deceased's ex-wife. It took some time to locate sufficient information to identify the parties to the satisfaction of the court. Once the grant of letters was received, the deceased's child listed the property. The property had been vacant for XX years with no maintenance being undertaken. The property had several contracts fall over when buyers found the damage to the property arising from this period of inoccupation was far more extensive than they first realised. The property was sold by the executor of the estate. The property was not used from the time the deceased passed until it was sold. On DD MM 20YY, a contract of sale was signed. On DD MM 20YY, the property settled.

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