Private ruling: Deceased estates - Commissioner's discretion
Date of advice: 30 March 2026
Published: 22 June 2026
Ruling period: Year ended 30 June 20YY
Date scheme commenced: DD MM YYYY

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. 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: After 20 September 1985, the deceased solely purchased the dwelling located the property. The property is less than 2 hectares. The property was the deceased main residence and not used to produce income. The deceased had the following children: • You, • Person A, • Person B, and • Person C. The deceased was estranged from their children for approximately XX decades. You were also estranged from your siblings. The deceased listed their neighbour, Person D as their next of kin whilst incapacitated in hospital. On DD MM YYYY, the deceased passed. The deceased passed intestate. The death certificate of the deceased did not list their children. From DD MM YYYY until sold, the property was left vacant. Person D had no knowledge of the deceased children and was unable to locate them until Person D replied to online message in MM YYYY. Person D gave Person A a copy of the keys to the property. On DD MM YYYY, you were informed of the deceased passing by Person A and contacted your other siblings. Person A refused to give the keys to the property to you or the other siblings. On DD MM YYYY, you contacted Lawyer A who informed you that Person D attempted XX times to gain letters of administration of the estate but was unsuccessful. For a period, you sent email correspondence to your siblings detailing your concerns regarding access to the property and not being given any copies of estate documents. Communications became hostile and abusive, with your other siblings agreeing not to do anything until MM the following year. At this time, you had the necessary documents to apply for letters of administration with your siblings, and you were seeking their cooperation in doing so. They did not agree to this approach. On DD MM YYYY, you lodged a caveat on the property. On DD MM YYYY, you applied for an updated and amended death certificate listing the children of the deceased. On DD MM YYYY, you engaged Lawyer B on progressing the estate and to engage with your siblings on your behalf. In MM YYYY, you attended the property with Person D's spouse. In a phone call you had with Person D you questioned why it took so long to locate the deceased's children. Person D stated they did everything he could and refused to provide you with another set of keys to the property. For a period, Lawyer B and your siblings started to proceed with the view to have all siblings apply for administration together as the fairest outcome. However, there was delays due to minimal replies from the siblings and you were unable to proceed. On DD MM YYYY, you lodged a second caveat on the property. In MM YYYY, you proposed a mediation meeting with all siblings (particularly Person A) to discuss progressing the estate, but all siblings declined to attend. Since communications with your siblings was ineffective Lawyer B ceased their engagement with you. On DD MM YYYY, you were granted letters of administration. On DD MM YYYY, you entered the property for the first time and noticed that it was unlocked. You immediately changed the locks. Due to the property being left vacant for a long duration you identified a pigeon and rodent infestation. For a period, you cleared the rubbish and started preparing the property for sale. On DD MM YYYY, you consulted trades for minor repairs and electrical work. For a period, you received multiple appraisals by different real estate agents. On DD MM YYYY, the repairs and electrical work were completed. On DD MM YYYY, transmission of title to administer was registered. On DD MM YYYY, you had a building inspection report completed at the property. On DD MM YYYY, you had an electrician repair electrical PowerPoints and light circuits. On DD MM YYYY, you received a report confirming there was no asbestos from broken and fallen eaves. On DD MM YYYY, you repaired the flyscreens and cleaned windows. On DD MM YYYY, you engaged Lawyer C to assist with the finalisation of the estate. On DD MM YYYY, you received a pre-sale property valuation report. There were no substantial repairs or improvements made to the property. On DD MM YYYY, you signed a contract with Agent A to sell the property. On DD MM YYYY, the property was listed for sale. On DD MM YYYY, the property sold. On DD MM YYYY, the property settlement.

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