Private ruling: Commissioner's discretion - deceased estate
Date of advice: 29 September 2025
Published: 17 November 2025
Ruling period: Year ending 30 June 20YY
Date scheme commenced: DD MM YYYY

Ruling: Q1: Will the Commissioner exercise the discretion in section 118-195 of the Income Tax Assessment Act 1997 (ITAA 1997) to allow an extension of time in respect to the pre-CGT half interest in the property 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 acquired a property with their spouse located at XX XX (the property). On DD MM YY, by transfer, the deceased acquired the entirety of the property. After the family settlement, the deceased continued to occupy the property as their main residence. On DD MM YY, the property was rented out. On DD MM YY, the deceased passed away at a Hospital in XX (the hospital). The deceased's will appointed one of their adult children as executor. The residue of the estate was to go to the deceased's two children in equal shares. The property is less than 2 hectares in size. In MM YY, shortly after the deceased's death, the executor made a request to the Coroner's Court to investigate the death of their parent. The administrator has provided supporting information that the administration of the estate was delayed due to circumstances outside of their control between DD MM 20XX and DD MM 20XX. This included lengthy legal disputes. On DD MM YY, the property was brought to auction, at which point it was passed in with no bids. The property remained on the open market, actively marketed until it was finally sold. On DD MM YY, a contract was entered into. On DD MM YY, the property settled.

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