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Edited version of private advice
Authorisation Number: 1052371016814
Date of advice: 7 March 2025
Ruling
Subject: Commissioner's discretion - deceased estate
Question 1
Will the Commissioner exercise the discretion under section 118-195 of Income Tax Assessment Act 1997 to allow an extension of time for you to dispose of your ownership interest in the dwelling and disregards 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 XX 20XX
The scheme commenced on:
XX 20XX
Relevant facts and circumstances
The deceased passed away on XX 20XX.
The property size was less than 2 hectares.
The deceased acquired the property before 20 September 1985.
The property was the main residence of the deceased until their date of death and was not used to produce assessable income at any time.
The deceased Will appointed you as the sole executor and beneficiary of the deceased estate.
The deceased's child, X, has no provision in the will due to mental incapacity.
The deceased had been the full-time carer for X in the property.
On XX 20XX, the deceased's health began to decline, and they were admitted to a residential aged care facility.
You chose on behalf of the deceased to continue to treat the property as their main residence from the time they moved to aged care.
The deceased's wishes were that you and your family share the responsibility of caring and supervising X in the property until you found an appropriate accommodation for them.
On XX 20XX, you, as the executor of the deceased estate, transferred the title of the property to yourself as the sole beneficiary.
You have been continuously looking for a potential service provider for X since the deceased moved to aged care facility.
On XX 20XX, you found accommodation for X at a community services organisation.
On XX 20XX, you listed the property for sale.
On XX 20XX, you helped X relocate to new accommodation.
On XX 20XX, you signed the contract of sale of the property.
On XX 20XX, the property sale settled.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 118-195(1)