Private ruling: Commissioner's discretion - deceased estate
Date of advice: 20 May 2026
Published: 3 August 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 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: In 19YY, the deceased acquired a property. On DD MM 19YY, the deceased acquired a XX% interest in land. 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. On DD MM 20YY, Probate was granted to the deceased child. You have supplied the deceased Will dated DD MM 20YY; under the Will you and your sibling were named executor and trustees. Reason for the delay Probate was delayed due to the lawyers unable to complete tasks due to COVID-19. The lawyers stated they were behind in their workload due to COVID-19 restrictions placed upon them. The delay in the sale of the property was due to sensitive circumstances including health issues of one of the deceased's children. The property was sold X months after the 2-year period. On DD MM 20YY, a signed contract of sale for the property. On DD MM 20YY, the property settled. The property was sold by the executors as part of the estate.

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