Private ruling: Commissioner's discretion - deceased estate
Date of advice: 12 December 2025
Published: 2 February 2026
Ruling period: Year ending 30 June 20YY
Date scheme commenced: DD MM 20YY

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 until DD MM 20YY for you to dispose of your ownership interest in the property 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: In 19YY, the deceased acquired a property (the property). In MM 20YY the deceased moved into a nursing home. On DD MM 20YY, the deceased passed away. The property is less than 2 hectares in size. The delay in the sale of the property was due to sensitive circumstances including health issues, family conflict and issues with contracts of sale of the property. The property was sold a few months after the 2-year period. On DD MM 20YY, you received an offer with a XX month settlement period. On DD MM 20YY, the contract was signed and deposit paid. The settlement date is not until the DD MM 20YY.

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