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.
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.
For any later CGT event that happens to the land or the lessor's lease of it: see section 132-10.