Income Tax Assessment Act 1997
View history note
Hide history noteCGT 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.
104-115(2)
The time of the event is when the lessor grants the lease, or at the start of the renewal or extension, as appropriate.
104-115(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
104-115(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 .
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
