Private ruling: CGT - deceased estate
Date of advice: 20 February 2026
Published: 7 April 2026
Ruling period: DD MM YY
Date scheme commenced: DD MM YY

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of 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.

Relevant facts and circumstances: The deceased acquired the property located at XXXX (the property) after 20 September 1985. The deceased passed away on DD MM YY. The property was the main residence of the deceased and was not used to produce assessable income at the time of death on DD MM YY, or at any time thereafter. Under a Will dated DD MM YY, the deceased's assets were to be divided equally between their two adult children. The deceased's assets consisted solely of the items listed in the Inventory of Assets and Liabilities submitted with the application for probate. Prior to the deceased's passing, it became clear that they could no longer remain living in the property due to ageing and health issues. Their children, who were also their attorneys, moved them to XXXX to be closer to family and to ensure their ongoing health and wellbeing. Under the authority of the Enduring Power of Attorney, the property was first placed on the market with XXXX, with documentation provided to the agent on DD MM YY. The property did not sell. From DD MM YY, the executors began gathering the necessary letters and documentation to apply for a Grant of Probate in Victoria, as the deceased held the property and a bank account in that state despite passing away in XXXX. Documents were then posted to XXXX for execution by each of the executors. The probate application was filed on DD MM YY and granted on DD MM YY. Due to the Christmas period and because both executors resided in XXXX, delays occurred with signing and forwarding documentation required to close the deceased's asset accounts. On or about DD MM YY, a transmission application was filed and the Certificate of Title was issued in the names of the executors on DD MM YY. As all previous Section XX documentation had expired (search statements and rate certificates are valid for three months only), new information had to be obtained. In or around late DD MM YY, updated search statements and new council, water and planning certificates were obtained. A new Vendor Statement was prepared and forwarded via DocuSign to the executors on DD MM YY. The Section XX was sent to the selling agent XXXX on DD MM YY, but no sale resulted. This aligned with the relisting of the property with XXXX in DD MM YY, which again did not result in a sale. On DD MM YY, the executors advised that a new selling agent, XXXX, had been appointed. Because the Section XX had again expired, updated certificates were required, including a new Register Search Statement and updated council, water and land tax certificates. A new Section XX was submitted to XXXX on DD MM YY; however, no sale occurred. On DD MM YY, the executors were contacted by XXXX regarding the sale of the property. Instructions were provided to proceed. New certificates, searches and related documents were obtained so that another Section XX could be prepared. This was provided to XXXX on DD MM YY. A contract of sale was prepared and submitted to XXXX on DD MM YY. The property was sold on DD MM YY. Settlement was completed on DD MM YY. At no time were any renovation or improvement works undertaken on the property. It was not improved in any way and was sold in its original condition.

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