Private ruling: Commissioner's discretion - deceased estate
Date of advice: 13 November 2025
Published: 5 January 2026
Ruling period: Year ending 30 June 20XX
Date scheme commenced: XX/XX/20XX

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of Income Tax Assessment Act 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 passed away on XX/XX/20XX. The dwelling is located is situated within an estate managed by Company A. The property is a moveable dwelling that can be divided, transported and relocated. A weekly fee is paid to Company A each week for the property to remain within the estate. This fee includes the use of the estate amenities. The property was placed on land within the estate with pillars and contains an attached carport and laundry facilities. The deceased acquired the property after 20 September 1985. The property was the main residence of the deceased just before they passed away and was not used to produce assessable income at that time. The deceased's will (the will), dated XX/XX/20XX, named Person A as the executor. Person A had predeceased the deceased. The will also named Person B as the alternate executor. The solicitor who held the will at the time that the deceased passed away made several attempts to locate Person B. Once Person B had been located, Person B confirmed that they did not wish to be the executor and renounced their position. On XX/XX/20XX, you applied for Letters of Administration with the will annexed. On XX/XX/20XX, you were granted Letters of Administration by the Supreme Court of State A. Prior to letters of Administration being granted, Company A had prohibited you to access to the property. Company A requested that you continue to pay the weekly fee for the property to remain within the estate. You continued to pay this fee from XX/XX/20XX until XX/XX/20XX. The deceased had accumulated many possessions during their ownership period. Between XX/20XX to XX/20XX, you travelled from your home to the property to clear it. You also attended to the deceased's vehicles. One vehicle had been impounded, which required you to travel to the car yard to organise the sale. The other vehicle required a safety inspection and needed to be registered before it could be sold. During this period, you were experiencing a medical condition. Your doctor advised you to rest so that your condition did not further deteriorate. The travel time and physical demand of clearing the property limited your visits to the property. In XX/20XX, your medical condition worsened, and you were unable to drive. You consulted with doctors and specialists who investigated your condition further. On XX/XX/20XX, you were issued a letter advising that the carport at the property did not comply to council regulations. The council requested that changes were made to the carport. In XX/20XX, you consulted with a specialist medical professional and were placed on a waiting list to have surgery. On XX/XX/20XX, you had surgery. On XX/XX/20XX, you had a further surgery. In XX/20XX, once the non-compliance order issued by the council had been addressed, the property was ready to be listed for sale. You notified Company A to prepare the paperwork for the sale. In XX/20XX, the agency agreement was sent to sales support for approval for the property to be listed for sale. In XX/20XX, the property was listed for sale. You entered a contract to sell the property on XX/XX/20XX with settlement occurring on the same day. You accepted the first offer you received to purchase the property. The property remained vacant after the deceased passed away.

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