Private ruling: Deceased Estate - 2 year discretion
Date of advice: 28 November 2025
Published: 12 January 2026
Ruling period: Year ended 30 June 20YY
Date scheme commenced: DD MM YY

Ruling: Q1: Will the Commissioner exercise his discretion under section 118-195 of the Income Tax Assessment Act 1997 to extend the period to dispose of your ownership interest in the property? | A1: Yes. Having considered all 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 property at state A (the property) was acquired by the deceased and Person B on DD MM YY as joint tenants. The property passed to the deceased as the surviving joint tenant after Person B's death in 20YY. The property was used by the deceased during their entire ownership period as their main residence and was not used for the purpose of producing assessable income. The deceased died on DD MM YY. Person C, was appointed executor and sole beneficiary of the estate under the Will, dated DD MM YY. Person C was X years of age at the date of the deceased's death. Person C suffered from several serious medical conditions and as a result took no steps to make an application for Probate of the Will or to administer the estate before they themselves died on DD MM YY. In 20YY court proceedings were commenced by an individual which impacted the estate. The court order finalising those proceedings was made on DD MM YY On DD MM YY, an application for appointment of an administrator of the deceased's estate was lodged. On DD MM YY, Letters of Administration were granted by the Supreme Court of the relevant State. On DD MM YY, the property was transferred to the administrator. On DD MM YY, a real estate agent was engaged. On DD MM YY, cleaners were engaged to clean the property to get it ready for sale. On DD MM YY, the property was listed for sale. On DD MM YY, the sales contract exchanged. On DD MM YY, settlement of the sale was finalised

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