| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1052408127142
Date of advice: 19 June 2025
Ruling
Subject: Commissioner's discretion - deceased estate
Question 1
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?
Answer 1
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'.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commenced on:
1 XX 20XX
Relevant facts and circumstances
On XX XX 19XX,the deceased and their spouse purchased Property 1 together as joint tenants. The deceased inherited the spouse's 50% share after their death. The deceased lived in this property as their main residence with Person A until they died. The property was not used to produce income.
The Public Trustee of State A was appointed as the executor in accordance with the Will of the deceased, dated XX XX 20XX.
On XX XX 20XX, the deceased died.
The Deceased's Will bequeathed the estate to Person A. Other provisions were made in the Will should this gift fail. If the gift failed the assets would be distributed in equal shares to family members.
A Family Provision Claim and subsequent legal matters delayed the administration.
On XX XX 20XX, an application was filed with the District Court of State A.
On XX XX 20XX, the District Court of State A issued the Terms of Settlement. Clause XX of the Deceased's Will was deleted in full and replaced, with the granting of a life tenancy in Property 1 to Person A. A provision was inserted to allow Property 1 to be sold and a replacement property purchased for Person A to reside for their lifetime.
Person A continued to live in Property1 until it was sold on XX XX 20XX.
On XX XX 20XX, The Public Trustee of State A as Trustee for the Deceased's Estate sold Property 1 and subsequently purchased Property 2 in accordance with the District Court of State A Terms of Settlement.
The property was less than 2 hectares in land size.
Person A resided in Property 2 as their main residence until their relocation to a nursing home in XX 20XX.
On XX XX 20XX, the Property commenced renting.
The property was rented to cover expenses for Property 2 and Person A's aged care.
On XX XX 20XX, Person A died.
On XX XX 20XX, Property 2 was listed for sale.
On XX XX 20XX, a contract was signed.
On XX XX 20XX, settlement occurred.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
