Edited version of private advice

Authorisation Number: 1052364880933

Date of advice: 19 March 2025

Ruling

Subject: Commissioner discretion - deceased estates

Question 1

Will the Commissioner exercise discretion under subsection 152-80(3) of the Income Tax Assessment Act 1997 (ITAA 1997) to extend the period in which a capital gain can be disregarded on the disposal of the properties?

Answer 1

Yes. Having considered the relevant circumstances, particularly in relation to the delays caused by disputes over the estate, the Commissioner will exercise the discretion under subsection 152-80(3) of the ITAA 1997 to allow an extension of time.

This ruling applies for the following period:

Year ended 30 June 20XX

Year ending 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

This private ruling is based on the facts and circumstances set out below. If your facts and circumstances are different from those set out below, this private ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.

The deceased purchased X properties at different times over their lifetime.

The deceased used these properties to carry on a business.

The deceased was over XX years of age when they passed away.

In the year of their passing the income from the deceased's business was less than $XX.

Each of the properties was owned for more than X years and used for more than X years for the business.

The deceased would have been eligible to apply the small business CGT concessions if a CGT event had occurred immediately before their death.

At the time of their passing the deceased was the sole owner of these properties.

There were multiple beneficiaries of the deceased's estate.

Under the terms of the will the properties, as part of the deceased's total estate, were to be divided equally among the trustees for discretionary testamentary trusts established for the beneficiaries of the will.

On their passing the will of the deceased was contested by the beneficiaries.

Probate on the will was granted a little over X months from the date of the deceased's passing.

The deceased estate was advertised some X months later.

The properties were initially advertised for sale X years later.

The executors of the estate received authority to make partial distributions from the estate some X years from the date of the deceased's passing.

All the properties have now been sold.

Relevant legislative provisions

Income Tax Assessment Act 1997 subsection 152-80(3)