Private ruling: Commissioner's discretion - deceased estate
Published: 1 September 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 complexity of administering the estate, the Commissioner will allow an extension of time.

Relevant facts and circumstances: The property is Address A. The property is less than 2 hectares in size. On XX XXX 20XX the deceased acquired the property. The property was not used to produce assessable income. On XX XXX 20XX the deceased passed away. The property was the main residence of the deceased just prior to their passing. The will nominated the deceased's child Person A as executor of the estate. On XX XXX 20XX probate was granted to Person A as executor of the estate. The state of XXX was in a covid lockdown at the time the deceased passed away. Travel restrictions existed for the 20XX year such that residents of the state were not allowed to travel more than X kilometres from their home. Person A resided XX kilometres away from the property. The deceased had three other children who all resided further away, two of them interstate. From XX XXX 20XX to XXX 20XX, the executor experienced multiple covid lockdowns. It was only in between these that they were able to attend the property to clean and prepare it for sale. In XXX 20XX one of the family had a relative pass away. On XX XXX 20XX the title of the property was transferred into Person A's name as legal personal representative of the estate. In XXX to XXX 20XX the work to remove and donate or re-home the deceased's belongings continued as well as rubbish removal. In XXX 20XX Person A contracted covid and as a result developed long covid symptoms. In XXX 20XX Person A had a relative who passed away. For the remainder of the 20X year Person A attended the property to continue the cleanout when they were physically and mentally able to. Between XXX and XXX 20XX, the family continued to have items removed from the property to prepare it for sale. In XXX 20XX the family decided to engage a professional service who then spent X days with a team of staff to clear the remaining items from the property and clean it. In XXX 20XX minor and incidental repairs and maintenance were undertaken and a real estate agent engaged to sell the property. On XX XXX 20XX the property sold at auction. On XX XXX 20XX the property was settled.

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