Private ruling: Deceased estate
Date of advice: 3 September 2025
Published: 3 November 2025
Ruling period: Year ended XX XXX 20XX
Date scheme commenced: XX XXX 20XX

Ruling: Q1: Will the Commissioner exercise his discretion under section118-195 of the Income Tax Assessment Act 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 the circumstances surrounding the difficulties experienced in administering the estate, the Commissioner will allow an extension of time.

Relevant facts and circumstances: The property is located at Address A and is situated on less than 2 hectares. On XX XXX 20XX Person A acquired the property. Person A's child, Person B lived with them at the time and resided at the property with them. Sometime in 20XX-20XX Person B's adult child, Person C moved into the property with their parent and grandparent. On XXXXX 20XX Person A (the deceased) passed away. At the time of their passing the property was the deceased's main residence and was not used to produce assessable income. The Will named the deceased's spouse as executor but they had predeceased them. The deceased's child, Person D was nominated as substitute executor. The Will left the bulk of the estate to the deceased's spouse, and in the event of their passing prior to the passing of the deceased, to their four children. In XXX 20XX Person D applied to Law Firm A, for the Will of the deceased. Around XXX-XXX 20XX the Will was provided to Person D. For the next approximately X months there were difficulties with regards to occupancy of the property that took time to resolve. In XXX 20XX Person D met with Law Firm A to discuss representing them as executor of the estate. In XXX 20XX Person D engaged Law Firm A as solicitors for the estate. On XX XXX 20XX Person D had an appointment with a real estate agent regarding selling the property. On XX XXX 20XX the real estate agent appraised the property. It was found to be in a poorly maintained condition and would need to be sold 'as is'. On XX XXX 20XX the real estate agent took photographs of the property for the listing but due to the poor condition of it, its listing price was low. On XX XXX 20XX Person D made an appointment with Accounts A to get assistance with making an application for an extension to the 2-year period to dispose of an inherited property. On XX XXX 20XX the first open home was held. On XX XXX 20XX a contract of sale was signed for the property. Settlement was originally set for XX XXX 20XX. On XX XXX 20XX the application for an extension to the 2-year period was lodged. On XX XXX 20XX an extension to the settlement date was sought and granted until XX XXX 20XX. On XX XXX 20XX probate was granted to Person D. On XX XXX 202XX Person D met with Law Firm A. On XX XXX 20XX the property became fully vacant. On XX XXX 20XX settlement on the property took place.

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