Private ruling: CGT - 2-year discretion
Published: 20 July 2026
Ruling period: XX XXXXX 20XX
Date scheme commenced: XX XXXXX 20XX

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? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner will allow an extension of time. Further information about the Commissioners discretion can be found by searching ato.gov.au for QC 66057.

Relevant facts and circumstances: The deceased, passed away on XX XXXXX 20XX. The property is located at the Property. In XXXXX 20XX, the property was purchased by the deceased and their ex-husband. During the property settlement the deceased received XXX% ownership of the property. The property was the deceased main residence just prior to their date of death and was not used to produce assessable income. The property was left vacant after the deceased's death. The property is on land less than 2 hectares in size. On XX XXXXX 20XX, the deceased created and signed their Last Will and Testament. In the Will, the Executors are named as Executor A and Executor B. The Beneficiaries of the Will are Beneficiary A and Beneficiary B, under the Trusts set up in the original Will. A clause in the Will gave the executors the power to sell the property in the administration of the estate. Reasons for delay in the property disposal: At the time the deceased died the original Will was unable to be located. Between XX XXXXX 20XX and XX XXXXX 20XX, the family tried to locate the original Will, searching personal belongings, the residence, conferring with family members and the deceased's boyfriend. On XX XXXXX 20XX, the Executors, made an application to the Court for Probate of a Lost Will. You have provided the Lost Will application. On XX XXXXX 20XX, the original Will was located by the deceased's partner. Between XX XXXXX 20XX - XX XXXXX 20XX, you withdrew the lost Will application from Court. On XX XXXXX 20XX, you submitted a new application for Grant of Probate to the Court On XX XXXXX 20XX, the Grant of Probate was granted to the Executors. In XXXXX 20XX, the decision was made to sell the property. You attended the property after the deceased's passing to change the locks and leave it in a safe condition. A family friend would check the property regularly on your behalf to ensure it was secured. The property had been vacant since the deceased died and therefore took considerable time and effort to present the property in a suitable condition for sale. Both executors and beneficiaries lived a distance away from the property and were employed full time. In XXXXX 20XX, the Executors raised the possibility of selling the property with the beneficiaries. The beneficiaries were dependent on the deceased, which made discussions regarding the sale of the property difficult. On XX XXXXX 20XX, one executor made a trip to check on the property. In XXXXX 20XX, the executors and beneficiaries made the decision to sell the property. Between XX XXXXX 20XX - XX XXXXX 20XX, both executors and the beneficiaries attended to the property to get ready for sale. On XX XXXXX 20XX, the Executors engaged a local agent to coordinate the sale of the property. On XX XXXXX 20XX, the property was listed with the Agent. On XX XXXXX 20XX, the Contract of Sale was signed. On XX XXXXX 20XX, the beneficiaries attended the property to remove the remaining items. On XX XXXXX 20XX, the Real Estate Agent provided a Reconciliation of Expenditure document On XX XXXXX 20XX, the property settlement was completed, the settlement statement has been provided.

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