INCOME TAX ASSESSMENT ACT 1997 - SECT 132.10 Grant of a long - term lease
INCOME TAX ASSESSMENT ACT 1997 - SECT 132.10
Grant of a long - term lease(1) These rules apply if * CGT event F2 happens for a lessor of property.
(2) For any later * CGT event that happens to the land or the lessor's lease of it, its * cost base and * reduced cost base (including the cost base and reduced cost base of any building, part of a building, structure or improvement that is treated as a separate * CGT asset) excludes:
(a) any expenditure incurred before * CGT event F2 happens; and
(b) the * cost of any * depreciating asset for which the lessor has deducted or can deduct an amount for the asset's decline in value under this Act.
Note: Subdivision 108 - D sets out when a building, structure or improvement is treated as a separate CGT asset.
(3) The fourth element of the property's * cost base and * reduced cost base includes any payment by the lessor to the lessee to vary or waive a term of the lease or for the forfeiture or surrender of the lease, reduced by the amount of any * input tax credit to which the lessor is entitled for the variation or waiver.
(4) The expenditure or payment can include giving property: see
section 103 - 5.