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Capital losses

Discussion in 'Accounting, Tax & Legal' started by narla, 25th Aug, 2010.

  1. narla

    narla New Member

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    25th Aug, 2010
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    Location:
    Brisbane, QLD
    Can someone advise if capital losses can be carried forward - and not applied against capital gains in any given year?
     
  2. Rob G.

    Rob G. Well-Known Member

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    Location:
    Melbourne, VIC
    Capital losses incurred in a FY must first be applied against capital gains from the current year.

    Excess capital losses can be carried forward, s.102-15 ITAA97.

    No harbouring of capital losses by not applying them against current capital gains ... e.g. if you were expecting more capital gains next year and you will be on a higher marginal tax rate then.

    Cheers,

    Rob
     
  3. Rob G.

    Rob G. Well-Known Member

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    Location:
    Melbourne, VIC
    Neither can you omit application of capital losses this year to deceive a lender into thinking your income is higher ... even if you later amend your tax return so technically you might not breach taxation laws.

    This would give rise to an action for recovery by the lender where intention could be proven as reasonably likely.

    Cheers,

    Rob
     
  4. narla

    narla New Member

    Joined:
    25th Aug, 2010
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    Location:
    Brisbane, QLD
    Thanks Rob - greatly appreciated!