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CGT on compulsory acquisition sale

Discussion in 'Accounting & Tax' started by Daniel007, 27th Feb, 2016.

  1. Daniel007

    Daniel007 Well-Known Member

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    Hi guys,

    I was wondering if CGT would apply to an IP purchased after 1985 if it was compulsory acquired by RMS? The property is located in NSW.

    Any advice or guidance would be appreciated.

    Cheers,
    Daniel
     
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    There may be some rollover provisions if you use the compensation money to buy a replacement property within a certain timeframe. This is something you need specialist advice on.
     
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  3. Daniel Taborsky

    Daniel Taborsky Well-Known Member Premium Member

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    Daniel007 likes this.
  4. Daniel007

    Daniel007 Well-Known Member

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    21st Jun, 2015
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    Location:
    Sydney
    Thanks guys
     
  5. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Bear in mind that use of the property as a main residence and date of acquisition can also affect these concessions.

    Sorry to hear its NSW. The RMS and NSW Govt have been heavily criticised for underpaying by a review that has been hidden from taxpayers. Seems those who fight get fair value and others don't and the words "fair value" used in the law isn't reflected in the single offer made with a poor process for mediating a disagreement. The massive no of forced acquisitions for new rail, road and tunnel projects which seem to presently affect half of Sydney led to this review.
     
    Last edited: 1st Mar, 2016