Edited version of private advice

Authorisation Number: 1052360795184

Date of advice: 12 February 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 ending 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

The deceased passed away on DD MM 19YY.

The property is located at XXXX (the property).

The deceased acquired the property before 20 September 1985.

The property is situated on less than two hectares of land.

In the will of the deceased, the deceased listed their spouse (Person A) as sole beneficiary of the estate. At the time the deceased passed away, Person A was also residing at the property.

Person A survived the deceased, but the property was never legally transferred into their name.

Person A continued to live in the property until they moved out on DD MM 20YY.

Person A held no other property, nor treated any other properties as their main residence during the time they lived in the property.

The property was sold on DD MM 20YY, with settlement occurring on DD MM 20YY.

The property was not used to produce assessable income between the date the deceased passed away and the date the property was sold.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195