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Whats the deal with selling shares?

Discussion in 'General Investing Discussion' started by Hazzaportfolio, 17th Jun, 2010.

  1. Hazzaportfolio

    Hazzaportfolio New Member

    Joined:
    17th Jun, 2010
    Posts:
    1
    Location:
    Perth WA
    I bought a heap of shares in a company that doubled in price I sold half and kept the other half. Now the other half has gone backwards by about 75% can i sell the leftovers and claim the loss against my income?
    Should I sell them in this financial year or hold and pay tax on the half I sold?

    Help?
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,623
    Location:
    Sydney, Australia
    Capital losses may only be offset against capital gains.

    You could sell the shares at a loss to offset your capital gains - but if the overall loss is greater than the gain you made, then you won't get to claim anything further, the loss will be carried forward to the future for when you next make a capital gain.

    You do need to consider your goals for this investment - is holding long term a better option for you, or do you think you can put that capital to better use in the short term?