Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p13
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 13/40)
Character Range: 1856411–1858873

received as *recoupment of it and that is not included in your assessable income, or an amount to the extent that you have deducted or can deduct it.

Exception
 (5) The lessor can choose to apply section 104‑115 to certain long term leases. If it does so, this section does not apply.

104‑115  Granting a long‑term lease: CGT event F2
 (1) CGT event F2 happens if:
 (a) a lessor grants a lease over land (whether or not the lessor owns an estate in fee simple in the land), or renews or extends a lease over land; and
 (b) the lease, renewal or extension is for at least 50 years and:
 (i) at the time of the grant, renewal or extension, it was reasonable to expect that it would continue for at least 50 years; and
 (ii) the terms of the lease, renewal or extension as they apply to the lessee are substantially the same as those under which the lessor owned the land or held a lease of the land; and
 (c) the lessor chooses to apply this section instead of section 104‑110.
Note: Section 103‑25 tells you when the choice must be made.
 (2) The time of the event is when the lessor grants the lease, or at the start of the renewal or extension, as appropriate.
 (3) The lessor makes a capital gain if the *capital proceeds from the event are more than the *cost base of the lessor's interest in the land. The lessor makes a capital loss if those capital proceeds are less than the *reduced cost base of that interest.

Exceptions
 (4) A *capital gain or *capital loss the lessor makes is disregarded if:
 (a) it *acquired the *CGT asset that is the land, or the lease to the lessor was granted, before 20 September 1985; or
 (b) the lease to the lessor has been renewed or extended and the last renewal or extension started before that day.
Note: For any later CGT event that happens to the land or the lessor's lease of it: see section 132‑10.

104‑120  Lessor pays lessee to get lease changed: CGT event F3
 (1) CGT event F3 happens if a lessor incurs expenditure in getting the lessee's agreement to vary or waive a term of the lease. The lessor makes a capital loss equal to the amount of expenditure it incurred. (The expenditure can include giving property: see section 103‑5.)
 (2) The time of the event is when the term is varied or waived.

Exception
 (3) However, this event does not apply to expenditure for a lease to which the lessor has chosen to apply section 104‑115.

104‑125  Lessee receives payment for changing lease: CGT event F4
 (1) CGT