Private ruling: Deceased estate
Date of advice: 18 September 2025
Published: 17 November 2025
Ruling period: Year ended 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 (ITAA 1997) to allow an extension of time for you to dispose of your ownership interest in the Property and disregard the capital gain you made on the disposal? | A1: Yes.

Relevant facts and circumstances: The deceased passed away on XX XX 20XX. At the time of their death, the deceased owned a main residence (the Property). The property had been acquired by the deceased and their late spouse pre-CGT as joint tenants and full ownership passed to the deceased upon the death of their spouse in XX 20XX. The deceased's three children were Person A, Person B and Person C. The children were the appointed executors under the will of the deceased. The loss of both parents within three months of each other was emotionally difficult for the children. Following the deceased's passing, Person C's terminal medical condition worsened and their treatment increased which prevented them from being able to assist with administering the estate. The property was located over X hours from the homes of Person C and Person A. The siblings had difficulties coordinating a time to attend to the property and make arrangements for their deceased parents' belongings, particularly due to Person C's ill health. Delays were also due to Person A's circumstances at the time including suffering from significant health issues. In XX 20XX, Person C passed away. On XX XX 20XX, the property went to contract with settlement occurring on XX XX 20XX, approximately a year after the expiry of the 2-year period.

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