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Edited version of private advice
Authorisation Number: 1052399153749
Date of advice: 27 June 2025
Ruling
Subject: Commissioner's discretion - deceased estate
Question 1
Will the Commissioner exercise his 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:
Income year ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
The deceased died without a will.
The dwelling was the main residence of the deceased just before their passing.
The dwelling was not then being used for the purpose of producing assessable income and was not used to produce income during the period of administration.
There was a change in the person who would administer the estate.
The title deed was missing.
A possible claim against the estate had to be resolved.
The trustee suffered from ill health.
The property was sold and settled.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 118-195
Income Tax Assessment Act 1997 subsection 118-195(1)