Private ruling: Commissioner's discretion - deceased estate
Date of advice: 9 January 2026
Published: 2 March 2026
Ruling period: Year ended 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 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'.

Relevant facts and circumstances: In 20YY, the Deceased and their partner acquired a property located at XXX XXX (the property). On DD MM 20YY, the Deceased's partner passed away, and the Deceased became the sole owner of the property. On DD MM 20YY, the Deceased passed away. The property is less than 2 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. On DD MM 20YY, probate was granted to the Deceased solicitor, and the paralegal as Executors and trustee of the will. Immediately after the Deceased died one of the Deceased's children rented the dwelling without the consent of the executors of the will. The delay in the sale of the property was due to legal issues. On DD MM 20YY, a termination notice was served on the tenants. On DD MM 20YY, the Executors commenced proceeding in the Residential Tenancy Tribunal to commence eviction of the tenants. The tenants vacated without a contested hearing. On DD MM 20YY, the property was listed for sale. The property was sold by the Executors of the estate. On DD MM 20YY, a signed contract of sale for the property. On DD MM 20YY, the property settled.

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