Private ruling: Commissioner's discretion - deceased estate
Date of advice: 7 May 2026
Published: 20 July 2026
Ruling period: Year ending 30 June 20YY
Date scheme commenced: 1 July 20YY

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of 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 deceased acquired 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. On DD MM 20YY, probate was granted to Person A. The deceased's will dated DD MM 19YY provided Person A with a life interest in the property. The property was Person A's main residence from the time that the deceased passed away. On DD MM 20YY, Person A undertook medical treatment. On DD MM 20YY, Person A suffered from a medical episode and was admitted to hospital. On DD MM 20YY, Person A was released from hospital and stayed with their relative. During this time, it was Person A's intention to return to the property, however after further medical testing, and it was found that their medical condition had progressed. On DD MM 20YY, Person A visited an aged care facility for assistance. On DD MM 20YY, Person A was advised that a room had become available in the aged care facility and made the decision to move in and have nursing care and meals provided to them. After some time, Person A relinquished the idea of returning to the property. In MM 20YY, an appraisal was undertaken by Company A. The appraisal described the property to be in a very run-down condition with major structural problems. The report states that the property was from the mid 18XX's and was unsuitable for living in. Person A's elderly family cleaned the property. This process took several months. The property contained both the deceased's possessions and Person A's possessions and needed to be cleared by Person A's family. On DD MM 20YY, the property was listed for sale. On DD MM 20YY, a contract was entered to sell the property, with settlement occurring on DD MM 20YY. The property was vacant from the time that Person A entered the aged care facility until it was sold. On DD MM 20YY, Person A passed away after experiencing multiple health issues.

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