Private ruling: Commissioner's discretion - deceased estate
Date of advice: 17 June 2024
Published: 29 July 2024
Ruling period: Year ending 30 June 2024
Date scheme commenced: 1 July 2023

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of the 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 DD MM 20YY. The dwelling is located at XXXX (the property). The property was initially acquired before 20 September 1985, and a new dwelling was constructed on 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 property was situated on less than two hectares of land. Probate application was lodged on DD MM 20YY. The Court issued queries regarding the Probate application on DD MM 20YY. Responses to the queries were submitted on DD MM 20YY. On DD MM 20YY the Court advised the Probate application should be withdrawn and resubmitted. The original application was withdrawn, and the revised application was filed on DD MM 20YY. Probate was subsequently granted on DD MM 20YY. While the property was being prepared to be ready for sale by the estate, there was a delay in the issuing of the death certificate outside the control of the estate. The death certificate was issued on DD MM 20YY. The property was listed for sale on DD MM 20YY and set for auction on DD MM 20YY. A contract of sale was entered into on DD MM 20YY, with settlement occurring on DD MM 20YY. The property has remained vacant between the date the deceased passed away until it was sold.

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