Edited version of private advice

Authorisation Number: 1052408918647

Date of advice: 18 June 2025

Ruling

Subject: CGT - deceased estate

Question

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

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:

DD MM YY

The scheme commenced on:

DD MM YY

Relevant facts and circumstances

On DD MM YY, you suffered a medical condition. You subsequently experienced two more medical conditions, further impacting your ability to manage your affairs. Consequently, you were required to commence ongoing medical treatment and rehabilitation, and you rely on carers several days a week to assist with basic daily functions.

On DD MM YY, your uncle (the deceased) died. The deceased's will (dated DD MM YY) appointed you, as executor of the will and trustee of the estate.

You inherited the property at XXXX (the property) from the deceased.

The property was the deceased's main residence at date of death, and it was not used to produce income.

The property contains a dwelling and is less than 2 hectares in size.

On DD MM YY, you started sorting and cleaning at the property. The deceased had paperwork, multiple vehicles in various stages of restoration and other items dating back to DD MM YY at the property. These all had to be organised, classified and removed from the property prior to being able to list the property for sale. The property also contained asbestos that needed to be removed.

On DD MM YY, you attended the property with family members to sort and clean over the weekend. You continued to sort and clean every weekend for XX weeks.

On DD MM YY, your son (who lived at home with you) suffered a serious work accident. He subsequently underwent surgery on DD MM YY and was on Workcover for XX months until On DD MM YY. This situation further demanded your attention and limited your ability to focus on the inherited property.

On DD MM YY, you attended the property with a valuer who valued one of the collectible cars, as the beneficiary of the car was unsure whether to sell or collect it.

On DD MM YY, you were notified that your stepfather had terminal cancer. For the next ten weeks you attend the hospital (most days) to visit your stepfather and to support your mother.

On DD MM YY, the final items were removed from the first floor inside the property.

On DD MM YY, internal asbestos was removed from the property.

On DD MM YY, your stepfather died. This event added to the emotional and logistical burdens you faced during this period.

On DD MM YY, your stepfather's funeral was held. Afterwards, you travelled to XXXX to help your mother clean up your stepfather's belongings. You were accompanied by a carer as you needed substantial help for basic day to day functions.

On DD MM YY, you attended to the sale and removal of one of the partially restored cars at the property.

On DD MM YY, a tornado hit where you live. Your street was closed for XX days, a power outage lasted XX days, and your property was damaged. About XX trees were uprooted, and it took nearly XX months to clean up the damage, as all local arborists were booked out. During the clean-up period, you had a medical condition that caused severe pain and restricted movement.

Between DD MM YY and DD MM YY, you attended XX physiotherapist appointments. During this period, you also did multiple trips to XXXX (each for one week) to assist your mother with the clean-up at her house, following the death of your stepfather.

By DD MM YY, numerous collectable vehicles still remained on the property, despite constant reminders to the beneficiary for them to be removed. The cars required parts from USA, before they could be sold.

On DD MM YY, the property was broken into. Garage doors and two external doors were damaged which required repairs.

On about DD MM YY, you attended the property to be present with the beneficiary who finally transported one of the remaining collectable cars from the property.

On DD MM YY, another collectable car was sold and removed from the property.

On DD MM YY, you engaged a real estate agent who listed the property for sale. Your intention was to sell the property within 90 days.

On DD MM YY, you appointed a new real estate agent to facilitate a sale, as you were disappointed that the original real estate agent could not achieve a sale. The property was re-listed with the new real estate agent and an auction was set for DD MM YY. The new agent advised you that they couldn't schedule an auction any earlier due to the Christmas period.

On DD MM YY, the property was sold at auction for $XX, with 90-day settlement terms.

On DD MM YY, the property settled.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195

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