• Step 6

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Work out your total current year capital losses applied using the following example as a guide. The amount includes current year capital losses applied in calculating a small business roll-over amount where the capital was made from a CGT event that happened on or before 11.45 am on 21 September 1999.

    Disregard any capital loss in 1999-2000 on:

    • assets you acquired before 20 September 1985
    • all personal use assets.

    The following example uses the facts from the earlier example in step 3.

    Example

    In 1999-2000, Lyn also sold jewellery from which she made a capital loss of $500 and other shares on which she made a capital loss of $200.

    Non-discount capital gains

    Discount capital gains

    Current year capital gains from collectables

    Current year discount capital gains from collectables

    (a) 673

    (e) 0

    Current year capital losses from collectables applied - cannot exceed (a)

    Current year capital losses from collectables applied against discount capital gains - cannot exceed (e)

    (b) 500

    (f) 0

    Current year capital gains from other CGT assets (c)

    Current year discount capital gains from other CGT assets

    (c) 0

    (g) 800

    Current year capital losses from other CGT assets applied - cannot exceed the total of (a) and (c)

    Current year capital losses from other CGT assets applied against discount capital gains - cannot exceed the total of (e) and (g)

    (d) 173

    (h) 27

    Non-discount capital gains after applying current year capital losses

    Discount capital gains after applying current year capital losses

    0

    773

    You may choose the order in which you reduce your capital gains. In the example, Lyn uses $173 of the capital losses from other CGT assets ($200) to first reduce her non-discount capital gains to zero. The remaining $27 reduces the discount capital gains.

    Add the amounts at (b), (d), (f ) and (h). The total is your current year capital losses applied. Write this amount at G item 14 on your tax return. Lyn would write $700 at this label.

    Keep a record of any excess current year capital losses from collectables and other CGT assets which were not applied to reduce your capital gains. These amounts can be carried forward and used to reduce your capital gains in future years.

    Last modified: 18 Sep 2009QC 18323