Private ruling: CGT - deceased estates
Date of advice: 16 March 2026
Published: 29 June 2026
Ruling period: Year ended 30 June 20XX | Year ending 30 June 20XX6
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 dwelling and disregard the capital gain or capital loss you made on the disposal of the property? | 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 and their spouse purchased the property at XX XX XX XX as joint tenants on DD MM 19YY. The property is less than 2 hectares. The deceased's spouse's ownership interest passed to the deceased by right of survivorship. The dwelling was the deceased's main residence and never used to produce income. In early MM 19YY, after the death of the deceased's spouse, one of their children (Child A) lived at the property with their mother. The deceased passed away on DD MM 20YY. The deceased's will appoints their lawyers as executors. Probate was grated on DD MM 20YY to one the lawyer's partners, with the other partners renouncing probate. The deceased's will provides Child A a right to reside at the property for their lifetime. The residuary of the estate to be divided equally between the deceased's two children. On DD MM 20YY, Child A suffered a medical episode that left them with functional impairments resulting in an extensive period of hospitalisation and rehabilitation. Child A moved to permanent residential care on DD MM 20YY. The property was listed for sale on DD MM 20YY and sold by the Executor on DD MM 20YY with settlement occurring on DD MM 20YY. There were no renovations or refurbishments undertaken on the property.

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