Private ruling: Commissioner's discretion - deceased estates
Date of advice: 22 December 2022
Published: 20 February 2023
Ruling period: The 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 acquired from a deceased estate 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/YYYY. The deceased acquired ownership interest in the property on DD/MM/YYYY. The property was situated on less than two hectares of land and was their main residence until their date of death. No renovations or repairs were made prior to the sale of the property. The property was not used for producing assessable income at the time of the deceased's death. The deceased's child was appointed executor of the deceased's estate (the executor). The deceased's child was also the beneficiary of the estate. Probate was granted on DD/MM/YYYY. The executor lived interstate. Due to the Covid-19 pandemic the state borders were shut and restrictions were in place for travel between those states. During the Covid-19 pandemic the executor was working for a regional health service that had multiple hospital locations that were spread across various locations. During this time the executor was required to assist these health services remotely and on-site. Whilst also being involved in the day-to-day Covid-19 crisis. This involved the executor working most weekends as well as being permanently on call as a senior manager. The executor was also responsible for coordinating pop-up testing clinics and organising several regional vaccination hubs and clinics. There were also restrictions on real estate activities imposed by the government due to the pandemic. During the lockdown periods, public auctions and inspections were banned and only virtual versions were allowed to proceed. When the executor was able to travel interstate between MM/YYYY and MM/YYYY they attended the deceased's property to complete basic maintenance and rubbish removal in preparation for the sale of the property. The sale of the property took place on DD/MM/YYYY. The property remained vacant from the deceased's date of death until settlement.

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