Income Tax Assessment Act 1997
View history note
Hide history noteCGT event F1 happens if a lessor grants, renews or extends a lease.
Note 1:
Other CGT events can apply to leases. An assignment of a lease is an example of CGT event A1.
Note 2:
There are special rules that apply to some lease transactions: see Division 132 .
104-110(2)
The time of the event is:
(a) for the grant of a lease:
(i) when the contract for the lease is entered into; or
(ii) if there is no contract - at the start of the lease; or
(b) for a renewal or extension - at the start of the renewal or extension.
104-110(3)
The lessor makes a capital gain if the *capital proceeds from the grant, renewal or extension are more than the expenditure it incurred on the grant, renewal or extension. It makes a capital loss if those capital proceeds are less .
104-110(4)
The expenditure can include giving property: see section 103-5 . However, it does not include an amount you have 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
104-110(5)
The lessor can choose to apply section 104-115 to certain long term leases. If it does so, this section does not apply.
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