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Edited version of your written advice
Authorisation Number: 1051505432252
Date of advice: 11 April 2019
Ruling
Subject: Capital gains tax: replacement asset roll-over relief: compulsory acquisition
Question
Will the replacement asset roll-over provisions in subdivision 124-B of the Income Tax Assessment Act 1997 for compulsory acquisition’s apply to the disposal of the residential unit to Visionary?
Answer
Yes. Having considered your circumstances and the relevant factors, the Commissioner accepts that the residential unit is being compulsory acquired under an Australian law.
This ruling applies for the following periods:
Year ending 30 June 2019
Year ending 30 June 2020
The scheme commences on:
1 July 2018
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You are a foreign resident for Australian taxation purposes.
You own the residential unit.
The residential unit is an investment property.
The residential unit is subject to Strata Plan No xxxx.
Strata Plan No xxxx resolved to commence the strata renewal process
At the end of this process, Company will be given the rights to compulsory acquire the residential unit.
Company made a final offer to purchase the residential unit advising that if you did not agree, they would commence the compulsory acquisition process.
You will enter into a Contract of Sale with Company.
You will purchase a replacement investment property within twelve months after the income year in which the sale occurs.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 102-20
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section 124-70
Income Tax Assessment Act 1997 section 124-75
Income Tax Assessment Act 1997 section 124-85