Private ruling: Commissioner's discretion - deceased estate
Published: 9 June 2026
Ruling period: Year ended 30 June 20XX
Date scheme commenced: D M 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 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 D M 20XX. You provided a copy of the will. The property is less than 2 hectares. The deceased acquired their ownership interest in the dwelling in 19XX. The dwelling was the main residence of the deceased just before the deceased's death. The property was not used for the purpose of producing assessable income at the time of the deceased's death. You provided a copy of the Titles Registry which cites you as the registered owner as of D M 20XX. You received the keys to the property, X and a half months later, on the D M 20XX, as the property was occupied by one of the executors and their spouse and the executor needed to remove, from the property, personal effects gifted to them under the will. You moved into the property on D M 20XX. You carried out repairs on the property. The repairs included: • repaired the back wooden fence • cleaned mould from ceiling, walls, door, window architraves • fixed the taps and grout in laundry and shower • upstairs toilet replace cistern and tap • replace damaged tiles • repair water damage along the bottom of the wall in the living room • painting • repair stairwell cupboards • remove stained carpet. After moving into the house your health worsened and surgery was scheduled for M 20XX. You were diagnosed with X and the specialist cancelled the surgery for X. You provided a copy a medical report dated D M 20XX. You provided copies of two medical reports from a specialist, dated D M 20XX and D M 20XX. Surgery for X then took place on D M 20XX. You provided a copy of the hospital discharge information dated D M 20XX. The discharge information required you to avoid heavy lifting, pushing and pulling. Your health issues made it difficult to remove your parent's belongings from the house to facilitate cleaning and addressing issues with mould and maintenance. You received notification of finalisation of the estate on D M 20XX. No renovations were carried out on the property. You organised a building inspection report which revealed a number of findings including: • holes in walls • smoke alarms to be fitted and certified • rust on X roof • roof flashing to be secured. The property was listed for sale on D M 20XX. The buyers saw photos of the property and purchased it sight unseen. You provided a copy of the contract of sale, signed on D M 20XX with a deposit of $X,XXX. There was a cooling off period until D M 20XX. The contract of sale cited settlement to take place on D M 20XX.The original contract finance date was D M 20XX. You provided copies of emails which confirm requests from the buyer to extend the finance contract date. The buyer extended the finance contract to D M 20XX.The buyer requested a further extension for finance be granted to D M 20XX due to they were waiting on a prior sale to be completed to allow the bank to grant finance. The buyers moved tools and equipment into the shed on the property and personal belongings into the house and parked a car in the carport prior to settlement. The buyers also diverted their mail to the property prior to settlement. Settlement took place D M 20XX.

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