Private ruling: Commissioner's discretion - deceased estate
Date of advice: 7 October 2025
Published: 24 November 2025
Ruling period: Year ending 30 June 20YY
Date scheme commenced: DD MM YYYY

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 (subject to the 2-hectare limitation) 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: In MM YYYY, the deceased acquired a property located at XX XX XX (the property). On DD MM YYYY, the deceased passed away. The property is greater 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. On DD MM YYYY, Probate was granted to you and the deceased grandchild. Reasons for the delay • You had caring responsibilities for your other parent. • Your spouse was diagnosed with a severe illness, their treatment took a considerable amount of your time. • You did not have the funds to buy out one of the beneficiaries. • Two potential off market buyers were interested in purchasing the property, but the sale did not transpire. • The first real estate agent failed to sell the property On DD MM YYYY, you signed with a different real estate agent. On DD MM YYYY, the property was contracted for sale. On DD MM YYYY, the property settled. The property was sold by the executors of the estate. The property was unoccupied from the time the deceased passed until it was sold.

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