Private ruling: Commissioner's discretion - deceased estate
Date of advice: 13 January 2023
Published: 6 March 2023
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 13 March 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of ITAA 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 died on XX XX 20XX. Letters of Administration with the will dated XX X 20XX was granted to the administrator by the State Supreme Court on XX X 20XX. The principal asset of the estate is a property is less than 2 hectares in size. The property was purchased by the deceased and PERSON B on about the XXX 20XX for $XXX,XXX. PERSON B predeceased the deceased. The executors were in dispute over the administration of the estate. The two instituted executors were the only two children of the deceased. Delay was occasioned as the son of the deceased was incarcerated multiple times after the deceased's passing and the daughter of the deceased resided overseas. Probate of the deceased's will, was granted by the State Supreme Court on XX XX 20XX to the instituted executors. The executors agreed to the appointment of an agent. On the advice of the agent renovations were affected to the property. In or about XX 20XX, a dispute arose between the instituted executors. On X XX 20XX proceedings were commenced in the State Supreme Court by the daughter against the son in relation to the estate of the deceased. Final orders were made by the Succession List Judge on X XX XX appointing an independent administrator of the estate. Letters of Administration with the will annexed was granted by the State Supreme Court on XX XX 20XX to the independent administrator. In about XX 20XX, the administrator engaged a real estate agent to commence marketing the property for sale. The contract of sale was singed the XX XX 20XX with the final settlement occurring on XX XX 20XX.

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