Commentary

C2.1201 Introduction to leases

Capital gains tax
Capital gains tax | Commentary

C2.1201 Introduction to leases

Capital gains tax | Commentary

Division C2.12     Leases

For updates affecting this Division please see Part C0 Updates

Leases: generally

C2.1201 Introduction to leases

There are special rules for computing the capital gain or loss which accrues on the disposal of a lease which has 50 years or less to run. Such a lease is known as a short lease and is a wasting asset1.

For leases other than leases of land, expenditure on acquisition2 or enhancement3 is deemed to waste on a straight line basis, that is, by equal daily amounts4. Expenditure in relation to a lease of land which is a wasting asset is deemed

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