Private ruling: Commissioner's discretion - deceased estate
Date of advice: 14 November 2025
Published: 5 January 2026
Ruling period: Year ending 30 June 20YY
Date scheme commenced: DD MM YYYY

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 (subject to the 2-hectare limitation) 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: In 19YY, the deceased and their spouse acquired a property located at XXX XXX XXX (the Property). On DD MM YYYY, the spouse passed away and the deceased became sole owner of the Property. In MM YYYY, the deceased had a contract on the Property for $XXX the contract of sale was subject to council development approval for material change of use from rural to commercial. The local council did not support the development application and therefore the contract of sale was terminated. On DD MM YYYY, the deceased passed away. The property is XXX hectares in size. The deceased moved into Aged Care in MM YYYY. The Property remained vacant from that time. The Property was never used for the purpose of producing income during the deceased's ownership. Reasons for the delay Probate took a longer than usually to obtain due to the local of the court and no court registrar, a registrar was required to travel to undertake court matters such as probate. In MM YYYY, probate was granted, to the deceased X children, executors of the deceased's Will, this was X months after the passing of the deceased. On DD MM YYYY, the executors of the estate, listed the property for sale with a real estate. After X months no offers were received on the property. In MM YYYY, the principle of the real estate agent passed away. In MM YYYY, the executors contacted and enquired with another real estate agent. In MM YYYY, the executor's eldest sibling passed away, this also affected the family as it was unexpected. In MM YYYY, the real estate agent inspected the property and offered to list, for sale providing various bodies of work were undertaken. During this time multiply complications to get the property ready for sale happened. This included: • List of required tasks supplied. On DD MM YYYY, the property was list for sale. The property was sold by the executors of the estate. The property was unoccupied from the time the deceased passed until it was sold. On DD MM YYYY, an offer was received to purchase. On DD MM YYYY, the contract of sale was signed. On DD MM YYYY, the property settled. The estate has been fully administered.

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