Private ruling: Commissioner's discretion - deceased estate
Date of advice: 12 January 2026
Published: 9 March 2026
Ruling period: Year ended 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: Person A (the deceased) passed away on DD MM 20YY. The dwelling is located at the property. The deceased acquired the property after 20 September 1985. The property was the main residence of Person A just before they passed away and was not used to produce assessable income at that time. The property was situated on less than two hectares of land. The deceased left a Will dated DD MM 20YY. The Will states the following: 4.1 I appoint my friend Person B of... and my friend Person C of... as my Executors. If either of my Executors do not survive me or are unable or unwilling to act as my Executor then I appoint my sibling Person D of... as an Executor. In MM 20YY, the deceased's sibling Person D indicated to the executors their interest in purchasing the property. Probate was granted on DD MM 20YY to Person B and Person C. Months prior to the deceased's passing Person D relocated to care for the deceased as their primary caregiver. Person D resided in the property with the deceased and continued to reside in the property after their passing. Due to relocating, Person D resigned from their former employment. Person D contacted a broker to secure finance to purchase the property. The broker advised that Person D would require six months of full-time employment before finance could be secured. In MM 20YY, Person D secured full-time employment. You engaged a real estate agent to appraise the property in MM 20YY. You agreed to proceed with a public sale if Person D was unsuccessful with securing finance. On DD MM 20YY, Person D made an application for finance which was approved on DD MM 20YY. You entered into a contract to sell the property on DD MM 20YY with settlement occurring on DD MM 20YY.

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