Private ruling: Commissioner's discretion - deceased estate
Date of advice: 9 February 2026
Published: 30 March 2026
Ruling period: Year ending 30 June 20YY
Date scheme commenced: DD MM 20YY

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.

Relevant facts and circumstances: On DD MM 20YY, your parent acquired a property located at XXX XXX (the property). On DD MM 20YY, the deceased passed away. The property is less than two hectares in size. The property was the deceased's main residence just before their passing. The property was never used for the purpose of producing income during the deceased's ownership or after the deceased's death. On DD MM 20YY, Probate was granted to the executor. Due to significant sensitive personal circumstances of the executor, there was a delay in selling the property. The sale was settled approximately 6 months after the expiry of the 2-year period.

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