Private ruling: CGT - 2-year discretion
Date of advice: 27 October 2025
Published: 15 December 2025
Ruling period: Year ending DD MM 20YY | Year ending DD MM 20YY | Year ending DD MM 20YY
Date scheme commenced: DD MM 20YY

Ruling: Q1: Will the Commissioner exercise the discretion under Item 1, Column 3 of the table in 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: The deceased's main residence was located at the Property. In the 19YY's, the deceased acquired the property when their spouse passed away. On DD MM 19YY, the deceased made and signed their last Will and Testament. On DD MM 20YY, the deceased passed away. The deceased lived in the property until date of their death as their main residence and did not earn any assessable income from the property. On DD MM 19YY, Probate was granted. The application for probate for the deceased listed the property as having a value of $XXX,XXX at the time. Under the deceased's Will, the deceased's children, Child A and Child B were appointed as Executors of the Estate, however Child B renounced the Probate, which is evidenced in the Grant of Probate. Probate was granted to Child A. The deceased's Will provides the Right to Occupy for Executors Child A and Child B for as long as they wished to live there, provided they pay the rates, taxes and utilities on the property and keep it in a proper state of repair. The Will also states that the house cannot be sold without their consent. The deceased's will provides that once Child A and Child B ceased to live in the property, the property should be sold. The proceeds of the sale of the property distributed to the Deceased's children, Child D, Child C, Child B and Child A, and any of the deceased's grandchildren alive at the time of their death. With funds of $XX,XXX to go to Child D, Child C and Child B, $XXX to the grandchildren and the remainder to Child A. Child C passed away X years after the deceased died. The deceased had X grandchildren, X from Child B and X from Child D. In 20YY, Child B ceased to live in the property. The property was registered in Child A's name as the Executor of the Estate. On DD MM 20YY, Child A passed away, he had continued to live in the property until his death. Child A lived in the property as their main residence and had done so since the death of the deceased and did not earn any assessable income from the property. On DD MM 20YY, probate was granted for Child A's Estate, to the Executor of the Estate, Friend A (friend of the Deceased). Friend A became the executor of Child A's estate by the 'chain of representation' in the Estate of the deceased. The Executor, Friend A and their spouse, Friend B, live next door to the property. Child A's Will provides that $XXX,XXX, would be paid to the Executor Friend A and their spouse Friend B. Friends C and D would inherit $XX,XXX. The remainder of the estate is to be divided equally between child A's family, child B and Child C. In MM 20YY, market and sales proposals were received from two agents, Real Estate Agent A and Real Estate Agent B, with updated proposals received in MM 20YY. No work was carried out on the property to make it ready for sale. The valuation provided shows the property value as $X,XXX,XXX - $X,XXX,XXX. On DD MM 20YY the executor Friend A entered a contract to sell the property to their spouse, Friend B for $X,XXX,XXX. The Estate has not derived any assessable income in the relevant periods and has no other mechanism to earn assessable income. On DD MM 20YY, the property settlement occurred.

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