Private ruling: CGT - deceased estate
Date of advice: 15 May 2026
Published: 27 July 2026
Ruling period: Year ended 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 to dispose of the ownership interest in the Property and disregard the capital gain 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: The deceased passed away on XX XXX 20XX. The property situated at Address A was owned by the deceased. The land was purchased by the deceased pre-capital gains tax and the house was built after purchase. The property was less than X in size. The property was the deceased's main residence for the whole of their ownership period. The property was never used to produce assessable income either prior to the deceased passing or after their passing. The delay in selling the property within the X legislated time period was largely attributable to the probate process, which extended over a number of months. The property needed to be cleaned out and prepared for sale which took some time to do. The property was placed in the hands of a real estate agent, and was listed on the open market for sale. The property contract of sale was signed, and settlement occurred a few months after it has been placed on the market.

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