Private ruling: Commissioner's discretion - deceased estate
Date of advice: 10 July 2024
Published: 19 August 2024
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 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 deceased acquired the property before 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. Years before the deceased passed away, a child of the deceased (Child A) developed a severe medical condition which left lasting effects. As a result, they had to sell their home to move in with the deceased where the deceased and Child A provided support to each other. Since the severe medical condition, Child A has suffered differing medical ailments. These various ailments were sustained both before and after the deceased passed away. As a result, Child A required differing levels of care based on the severity. As a result of the health issues, it was determined that requiring Child A to vacate the property immediately may have been too traumatic. Additionally, it took a significant amount of time to locate suitable alternative accommodation arrangements for them. Probate was granted on DD MM 20XX. The property was sold and settled on DD MM 20YY. The property has not been used to produce assessable income at any time between the date the deceased passed away until the property was sold.

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