Private ruling: Commissioner's discretion - deceased estate
Date of advice: 5 May 2026
Published: 13 July 2026
Ruling period: DD MM YY
Date scheme commenced: DD MM YY

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 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: On DD MM YY, the deceased acquired a property located at XXXX. The property was acquired solely by the deceased. From the date of acquisition until death, the deceased occupied the property as their main residence. The property is less than two hectares in size, was never used to produce assessable income, and was never available for rent. The deceased did not hold an ownership interest in any other real property during their lifetime. No capital improvements were made to the property during the ownership period. On DD MM YY, the deceased passed away. On DD MM YY, the deceased estate was referred to Entity A as an intestacy-authorised administrator, as the deceased's Will had not yet been located. Between DD MM YY and DD MM YY, Entity A undertook asset identification and protective actions in respect of the estate. On DD MM YY, the deceased's original Will was located. Entity A was not named as executor under the Will. The Will named an executor who had predeceased the deceased and identified substitute executors. The contact details for the substitute executors were not current, and their whereabouts were unknown at that time. Between DD MM YY and DD MM YY, Entity A made ongoing attempts to locate and contact the substitute executors. During this period, Entity A was unable to obtain the authority required to administer the estate and accordingly could not apply for probate or dispose of the property. On DD MM YY, the substitute executors were located. They advised that they did not wish to act and provided written authority for Entity A to administer the estate. On DD MM YY, probate of the deceased's estate was granted to Entity A by the relevant court. On DD MM YY, following the grant of probate, Entity A notified the beneficiaries named in the Will in writing of their entitlements. The beneficiaries are Entity B, Entity C, and Entity D. Each beneficiary is entitled to an equal share of the residue of the estate. All beneficiaries are income tax exempt entities. Following receipt of probate and authority to act, Entity A immediately commenced administration of the estate, including arranging for cleaning, rubbish removal, and preparation of the property for sale. On DD MM YY, an authority to sell was executed appointing Entity E as the selling agent for the property. On DD MM YY, a contract for the sale of the property was entered into. On DD MM YY, settlement of the sale of the property occurred and the sale proceeds were received into the estate. No capital improvements were made to the property after the deceased's death and prior to its disposal.

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