Private ruling: Commissioner's discretion - deceased estate
Date of advice: 28 November 2024
Published: 13 January 2025
Ruling period: Year ended 30 June 20XX.
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under the Income Tax Assessment Act 1997 (ITAA 1997) section 118-195 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 relevant factors the Commissioner will allow an extension of time.

Relevant facts and circumstances: This private ruling is based on the facts and circumstances set out below. If your facts and circumstances are different from those set out below, this private ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. Person A (the deceased) passed away on XX XXXX 20XX. The deceased owned a dwelling (the property) that was acquired after 20 September 1985. The property was the main residence of the deceased just before they passed away and was not used to produce assessable income at that time. The property was situated on less than two hectares of land. The deceased had one child, Person B, who has been a ward of the state since age X. The applicant acts as financial administrator for Person B. The deceased passed away intestate. The Applicant was informed of the Estate by a law firm representing a legal personal representative of the invalid Will who was a sibling of the deceased. The Applicant proceeded to investigate the legality of this and after some communication the sibling decided not to pursue letters of administration. The Applicant began a process of due diligence before pursuing letters of administration under Part V, section 71(3)(c) of the Trustees Act 1958 (VIC). The Applicant applied for administration of the estate and probate was granted on XX XXXX 20XX A financial encumbrance still existed on the property and this was discharged. The property was listed for sale after the legal proceedings were finalised. The Applicant entered into a contract to sell the property on XX XXXX 20XX with settlement occurring on XX XXXX 20XX

Relevant legislative provisions: Income Tax Assessment act 1997 (ITAA) Section 118-195