Private ruling: Commissioner's discretion - deceased estate
Date of advice: 25 November 2025
Published: 12 January 2026
Ruling period: Year ending XX 20XX
Date scheme commenced: XX 20XX

Ruling: Q1: Will the Commissioner exercise the discretion under section 118-195 of 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.

Relevant facts and circumstances: The deceased acquired the property after 20 September 1985. The property size was situated on less than 2 hectares. The property was the main residence of the deceased until the date of death and was not used to produce assessable income at any time. The administration of the estate was delayed due to protracted legal proceedings outside the beneficiaries and executor's control. This led to the property being sold less than a month after the 2-year period expired. On XX 20XX, the Probate was granted to you as executor of the deceased estate. On XX 20XX, you signed the contract of sale of the property. On XX 20XX, the property was settled.

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