Private ruling: Deceased estate two year discretion
Date of advice: 13 December 2021
Published: March 2022
Ruling period: Year ending 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner allow an extension of time for you to dispose of your ownership interest in the dwelling and disregard the capital gain or 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 'QC 66057' on ato.gov.au

Relevant facts and circumstances: The Deceased owned a property which was their main residence and was not used for income producing purposes. The deceased passed away on XX/XX/XXXX. Letter of Administration in Intestacy were granted to the deceased's de-facto partner as Administrator of the Estate. The Will of the deceased was located on XX/XX/XXXX, Grant of Probate was issued to the executor outlined in the will. Challenge of the will was lodged by the de-facto against the Estate soon after appointment of the Executor. The new Executor who is now responsible for the administration of the Estate did not have control over the property until their appointment. Once the rightful Executor was appointed, the property was brought to market as soon as it was practically possible and sold soon after. On XX/XX/XXXX, the property sold with settlement occurring on XX/XX/XXXX.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 118-195(1)