Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 118 - Exemptions  

Subdivision 118-B - Main residence  

Compulsory acquisitions of adjacent land only

SECTION 118-240   118-240   What the following provisions are about  


You can ignore a capital gain or capital loss you make from a compulsory acquisition (or similar arrangement) that happens only to land that is adjacent to:

  • (a) a dwelling that is your main residence; or
  • (b) a dwelling that passed to you as a beneficiary, or trustee, of a deceased estate;
  • to the extent that the land was used primarily for private or domestic purposes in association with the dwelling.

    There is a limit on the maximum area of land covered by the exemption.

    Note 1:

    The exemption may not apply in full if the dwelling:

  • (a) was not always a main residence; or
  • (b) was used for the purpose of producing assessable income.
  • Note 2:

    The exemption may not apply at all if you are a foreign resident.


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