Private ruling: Commissioner's discretion - deceased estate
Date of advice: 27 November 2025
Published: 12 January 2026
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 Income Tax Assessment Act 1997 (ITAA 1997) to allow an extension of time for you to dispose of your ownership interest in the property 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: On DD MM 20YY, the deceased inherited a property located at XXX XXX (the property). 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. A copy of the will was supplied in the application, within the will the deceased sibling was appoint as executor of the estate. On DD MM 20YY, one of the beneficiaries requested a copy of the will. Following the deceased's passing, one of the beneficiaries remained living in the property. They did not permit the executor access and changed the locks. During this period, the occupant did not pay rent or contribute to any operating costs. All expenses, including council rates, body corporate levies, and insurance were met by the executor. The will was contested under the Family Law Act. On DD MM 20YY, the executor appointed a lawyer to handle probate and any estate matters. On DD MM 20YY, probate application was lodged, and a property evaluation was done the property. On DD MM 20YY, Lawyers for the plaintiff advised they are contesting the will. On DD MM 20YY, probate was granted. On DD MM 20YY, an application was lodge to transfer the property to the executor of the estate. On DD MM 20YY, the Plaintiff commenced legal action contesting the will. This resulted in extended legal proceedings over two years. Between DD MM 20YY to DD MM 20YY, Multiple hearings, mediations, and settlement conferences were held. On DD MM 20YY, the property title was transferred to the executor. The property was sold by the executor of the will. In MM 20YY, the occupant agreed to vacate the property by DD MM 20YY. On DD MM 20YY, draft court orders were agreed on and filed with the court. On DD MM 20YY, the property was listed for sale. On DD MM 20YY, the property went to auctioned. On DD MM 20YY, the property contract was signed. On DD MM 20YY, the property settled.

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