Private ruling: Capital gains tax
Date of advice: 9 September 2025
Published: 10 November 2025
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) to allow an extension of time to dispose of the ownership interest in the property and disregard the capital gain made on the disposal? | A1: 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: You are the executor of your grandparent's estate. The deceased passed away a couple of years ago. The deceased lived at the property. The property was purchased by the deceased's spouse before 1985 and passed to the deceased under a will. The property was the deceased main residence for the whole of their ownership period. The property was not used to produce assessable income. The property was less than 2 hectares in size. Probate was granted in a prior year. Your relative had been living in the property with the deceased for a number of years and lived at the property for an earlier period. The will left the property to you and your relative in equal shares. The delay in selling the property within the 2 year time was due to the following: • The property was still in the name of the deceased late spouse, and this was required to be rectified prior to probate being granted. • Your relative who was living in the property when the deceased passed away was threatening to challenge the will. • Your relative was actively disrupting the sale process by not allowing the Real Estate access to the property. • You were not granted access to the property to commence preparing it for sale until a few months ago. • There was a dispute with the original Real Estate Agency, and you were forced to engage another Agency. Once the second Agency was engaged a contract was placed on the property within a couple of weeks. The property settled a few days outside the legislated 2 year time frame.

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