Private ruling: CGT and deceased estates - 2-year discretion
Date of advice: 16 April 2026
Published: 6 July 2026
Ruling period: Year ending 30 June 20YY
Date scheme commenced: 1 July 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 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 purchased the property at XX XX XX on DD MM 19YY. The property is less than 2 hectares. The dwelling was the deceased's main residence and never used to produce income. The deceased passed away on DD MM 20YY. The deceased's will appoints the XX XX XX as Executor. Probate was grated on DD MM 20YY. The deceased's will provides their spouse a right to reside at the property for their lifetime. Their child is residuary beneficiary. The deceased's spouse passed away between DD MM 20YY and DD MM 20YY. The property was listed for sale on DD MM 2YYY 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