Private ruling: Commissioner's discretion - deceased estate
Date of advice: 11 March 2026
Published: 4 May 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 as tenants in common a dwelling. (The dwelling). | The other tenant in common was the deceased's sibling. (Sibling A) | In the Will of the deceased, the interest in the dwelling was bequeathed to the deceased's children in equal shares. | The dwelling was the deceased's main residence. | The dwelling was not used to produce assessable income and was situated on land less than 2 hectares. | Sibling A continued to occupy the dwelling as their main residence until they passed away on xx xx 20xx. | The executor prepared the dwelling for sale as soon as practicable after the passing of sibling A. | No renovations were undertaken. | A contract was entered into for sale in XX XX 20XX. | Settlement for sale took place on XX XX 20XX.