①Where Article 33, paragraph (1) (Capital Gains) of the Act applies to the establishment (including an act of causing another person to use the land pertaining to a land leasehold right; the same applies hereinafter in this Article) of a land leasehold right or servitude prescribed in Article 79, paragraph (1) (Acts Deemed to Be Transfers of Assets) (hereinafter in this Article referred to as "land leasehold right, etc."), the acquisition cost to be deducted in the calculation of the amount of capital gains pertaining to that establishment is the amount calculated by multiplying the sum of the amount required for the acquisition of the land on which that land leasehold right, etc. was established and the amount of improvement expenses by the proportion that the amount listed in item (i) accounts for in the amount listed in item (ii).

②Where a land leasehold right, etc. has been further established in favor of another person on land on which a land leasehold right, etc. has been established, if there is an amount treated as acquisition cost under the preceding paragraph for the earlier establishment of the land leasehold right, etc., then for the application of that paragraph to the establishment of the land leasehold right, etc. in favor of that other person, the sum of the amount required for the acquisition and the amount of improvement expenses prescribed in that paragraph pertaining to that land is the amount obtained by deducting the amount treated as acquisition cost from the amount equivalent to that sum.

③Where paragraph (1) applies, if no land leasehold right, etc. is currently established on land on which a land leasehold right, etc. was previously established, and there is acquisition cost that was deducted under that paragraph in the calculation of the amount of capital gains pertaining to the establishment of that earlier land leasehold right, etc., then, except where consideration was paid for the extinguishment of that earlier land leasehold right, etc. (including the right pertaining to the use referred to in that paragraph; the same applies hereinafter in this paragraph), the acquisition cost prescribed in paragraph (1) is the amount obtained by deducting the amount equivalent to the deducted acquisition cost from the amount calculated under that paragraph for the land leasehold right, etc. referred to in that paragraph.

④Where paragraph (1) applies, if the land pertaining to the establishment of that land leasehold right, etc. has been continuously owned since on or before December 31, 1952, the sum of the amount required for the acquisition and the amount of improvement expenses prescribed in that paragraph pertaining to that land is the amount equivalent to the sum of the amount calculated for that land under Article 172, paragraphs (1) and (2) (Acquisition Cost of Assets Acquired on or before December 31, 1952) and the amount of improvement expenses expended on or after January 1, 1953.

①Where Article 33, paragraph (1) (Capital Gains) of the Act has applied to the establishment (including an act of causing another person to use the land pertaining to a land leasehold right; the same applies hereinafter in this Article) of a land leasehold right, etc. prescribed in paragraph (1) of the preceding Article (hereinafter in this Article referred to as "land leasehold right, etc.") and the land on which that land leasehold right, etc. was established is transferred, for the application of Article 33, paragraph (1) of the Act, a transfer of the portion equivalent to the land subject to a leasehold prescribed in paragraph (1), item (ii) of the preceding Article pertaining to that land (hereinafter in this Article referred to as "land subject to a leasehold") is deemed to have occurred, and the acquisition cost to be deducted in the calculation of the amount of capital gains pertaining to that transfer is the amount obtained by deducting, from the sum of the amount required for the acquisition of the land and the amount of improvement expenses prescribed in paragraph (1) of the preceding Article, the amount equivalent to the acquisition cost deducted under that paragraph in the calculation of the amount of capital gains pertaining to the establishment of that land leasehold right, etc.

②Where a person to whom Article 80 (Special Economic Benefits Treated as Consideration for the Establishment, etc. of Land Leasehold Rights) has applied with regard to the establishment of a land leasehold right, etc. has repaid, in whole or in part, the portion, out of the amount of the loan received as referred to in paragraph (1) of that Article, that was added under that paragraph to the amount of consideration for that establishment, or has otherwise returned, in whole or in part, the special economic benefit prescribed in that paragraph, if that return results in an increase in the ground rent for the land pertaining to the land leasehold right, etc., the removal of a building or structure existing on that land, or any other increase in the value of the land subject to a leasehold of that land, the amount equivalent to the amount of the benefit returned is to be added to the sum of the amount required for the acquisition of the land on which that establishment was made and the amount of improvement expenses.

①Where Article 33, paragraph (1) (Capital Gains) of the Act applies to the sublease (including an act of causing another person to use that land; the same applies hereinafter in this Article) of land pertaining to a land leasehold right prescribed in Article 79, paragraph (1) (Acts Deemed to Be Transfers of Assets) (hereinafter in this Article referred to as "land leasehold right"), the acquisition cost to be deducted in the calculation of the amount of capital gains pertaining to that sublease is the amount calculated by multiplying the sum of the amount required for the acquisition of the land leasehold right pertaining to the land subleased and the amount of improvement expenses by the proportion that the amount listed in item (i) accounts for in the amount listed in item (ii).

②Where the preceding paragraph applies, if the right pertaining to a previous sublease of land has presently been extinguished, and there is acquisition cost that was deducted under that paragraph in the calculation of the amount of capital gains pertaining to that previous sublease, then, except where consideration was paid for the extinguishment of the right pertaining to that previous sublease, the acquisition cost prescribed in that paragraph is the amount obtained by deducting the amount equivalent to the deducted acquisition cost from the amount calculated under that paragraph for the land leasehold right referred to in that paragraph.

③Where paragraph (1) applies, if the land leasehold right pertaining to the subleased land prescribed in that paragraph has been continuously owned since on or before December 31, 1952, the sum of the amount required for the acquisition and the amount of improvement expenses prescribed in that paragraph pertaining to that land leasehold right is the amount equivalent to the sum of the amount calculated for that land leasehold right under Article 172, paragraph (1) (Acquisition Cost of Assets Acquired on or before December 31, 1952) and the amount of improvement expenses expended on or after January 1, 1953.

①Where the provisions of Article 33, paragraph (1) (Capital Gains) of the Act have applied to the sublease (hereinafter in this Article referred to as "sublease") prescribed in paragraph (1) of the preceding Article of land pertaining to a land leasehold right prescribed in that paragraph (hereinafter in this Article referred to as "land leasehold right"), and a transfer of the land leasehold right pertaining to the land so subleased has taken place, for the purposes of the application of the provisions of Article 33, paragraph (1) of the Act, the acquisition cost to be deducted in calculating the amount of capital gains pertaining to that transfer is the amount obtained by deducting, from the sum of the amount required for the acquisition of the land leasehold right prescribed in paragraph (1) of the preceding Article and the amount of improvement expenses, the amount equivalent to the acquisition cost deducted pursuant to the provisions of that paragraph in calculating the amount of capital gains pertaining to that sublease.

②Where a person to whom the provisions of Article 80 (Special Economic Benefits Treated as Consideration for Establishment, etc. of a Land Leasehold Right) have applied with respect to the sublease of land pertaining to a land leasehold right has repaid all or part of the amount of the loan received under paragraph (1) of that Article that was added to the amount of consideration for that sublease pursuant to the provisions of that paragraph, or has otherwise returned all or part of the special economic benefit prescribed in that paragraph, and as a result of that return there has been an increase in the value of the land leasehold right pertaining to the land so subleased, such as an increase in the royalty pertaining to that sublease or the removal of a building or structure situated on that land, the amount equivalent to the amount of the benefit returned is to be added to the sum of the amount required for the acquisition of the land leasehold right pertaining to the land so subleased and the amount of improvement expenses.

①The assets specified by Cabinet Order prescribed in Article 62, paragraph (1) (Loss of Assets Not Ordinarily Necessary in Everyday Life, Due to Disaster) of the Act are the following assets.

②Where, pursuant to Article 62, paragraph (1) of the Act, the amount of losses prescribed in that paragraph suffered on assets not ordinarily necessary in everyday life prescribed in that paragraph is deemed to be an amount to be deducted in calculating the amount of capital gains for the year that includes the date on which they arose and for the following year, it is as provided in the following items.

③The value of an asset not ordinarily necessary in everyday life prescribed in Article 62, paragraph (1) of the Act, which serves as the basis for calculating the amount of losses suffered on that asset, is the amount set out in each of the following items for the category of assets set out in that item.