Private ruling: Commissioner's discretion - deceased estate
Date of advice: 3 December 2025
Published: 27 January 2026
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? | 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' . This private ruling applies for the following period Year ending 30 June 20xx The scheme commenced on: 1 July 20xx


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


Relevant facts: The deceased passed away. | The deceased owned a dwelling. (The dwelling). | The dwelling was acquired prior to 20 September 1985. | The land size is less than 2 hectares. | The deceased left a Will dated xx xx19xx. The deceased divorced their then spouse on xx xx19xx. | The deceased subsequently married their second spouse (Spouse 2) on xx xx 19xx. | Spouse 2 passed away on xx xx 20xx. | The dwelling remained the deceased's main residence. The deceased resided in a residential care facility for a brief period until their passing. | The dwelling remained vacant and was not used to produce income. | At the time of the deceased's passing their affairs were administered by you pursuant to a State Administrative Tribunal order issued on xx xx20xx. | You encountered difficulties with The Will of the deceased and in particular whether it was a valid Will. The investigations concluded that as the Will was completed prior to the deceased's marriage to spouse 2 that it was invalid. | On xx xx 20xx you instructed an external genealogy contractor to conduct a next of kin (NOK) search. | The genealogy search was more involved than initially anticipated as the deceased had arrived in Australia from overseas as a child migrant. Delays were experienced in identifying the deceased's parents. Considerable time was spent on identifying potential beneficiaries including stepchildren and half siblings of the deceased and most of these identified resided overseas. | On xx xx 20xx the genealogy contractor provided their initial report. You requested additional searches which were concluded on xx xx 20xx. | On xx xx 20xx you applied for Letters of Administration. | On xx xx 20xx Letters of Adminstration was granted. | On xx xx 20xx the sale of the dwelling commenced. | On xx xx 20xx a valuation of the dwelling was obtained. | On xx xx 20xx instructions were sent to potential listing agents. | On xx xx 20xx a property selling agent was appointed. | On xx xx 20xx the property was listed for sale. | On xx xx 20xx an offer was received and accepted by the beneficiaries. | On xx xx 20xx settlement for the sale of the dwelling occurred.