Edited version of private advice

Authorisation Number: 1052373254050

Date of advice: 19 March 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 DD/MM/20YY

The scheme commenced on:

DD/MM/20YY

Relevant facts and circumstances

The deceased passed away on DD/MM/20YY leaving a will.

As at date of death, the deceased owned a property at XXX, which they purchased on DD/MM/20YY.

The property was the deceased's main residence at time of death and Person A was living with them at this time.

The will granted Person A the right to reside in the property for as long as they wished, and they continued to live there.

The will appointed the deceased's children as executors and trustees.

The will stated that the trustees may not sell the property until Person A ceased to live in the property, or ceased to comply with the conditions of their right of occupation.

On DD/MM/20YY, Person A moved into an aged care facility.

On DD/MM/20YY, a contract of sale was signed on the property.

On DD/MM/20YY, settlement occurred.

At all material times, the property was not used for producing assessable income.

The property is less than X hectares in size.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 118-195