if a property bought(compulsorily) by the state Government what is the treatment for capital gain?

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_Dan_ATO · Answer

I will try to be as clear as I can in my response below, however, how and when CGT is applied depends on a number of factors. I have provided links below to cover these factors. If the property was a private residence there is no CGT consequences, your friend is able to claim a main residence exemption. If the property was a CGT asset (investment property) your friend may be eligible to rollover the any CGT until they sell their replacement asset. Please see our list of Events eligible for the rollover If your friend does not want to rollover the their CGT, they will pay a CGT on the disposal of their investment property. When the CGT is worked out depends on the circumstances involved, if compensation was received, if any negotiation took place and when the property was acquired. For detailed information on these circumstances, please see Working out the timing of the CGT event. If after reading the above you have any further questions, please provide more detail on what your friend plans to do with the replacement asset or compensation payment.

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