• Step 8

    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

    You can further reduce your total current year capital gains by applying your prior year net capital losses.

    The amount includes prior year net capital losses applied in calculating a small business roll-over amount or retirement exemption where the capital gain is made from a CGT event that happened on or before 11.45 am on 21 September 1999.

    You may choose the order in which you reduce your capital gains - see step 6.

    However, you must apply prior year net capital losses in the order in which you made them. For example, use net capital loss from 1997-98 before you use any net capital loss made in 1998-99.

    Work out your prior year net capital losses applied using the following example as a guide.

    Example

    In addition to the capital gains and losses made in 1999-2000, Lyn has prior year net capital losses of $400 from other CGT assets. She did not use these in previous years to reduce a capital gain.

    Non-discount capital gains

    Discount capital gains

    Current year capital gains from collectables

    Current year capital gains from collectables

    (a) 673

    (l) 0

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

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

     

    (b) 500

     

    (m) 0

    (a) - (b)

    (c) 173

    (l) - (m)

    (n) 0

    If (c) is positive you can further reduce it by prior further reduce it by prior year net capital losses.

    If (n) is positive you can further reduce it by prior further reduce it by prior year net capital losses.

    Prior year net capital losses from collectables applied

    Prior year net capital losses from collectables applied

     

    (d) 0

     

    (o) 0

    (c) - (d)

    (e) 173

    (n) - (o)

    (p) 0

    Current year capital gains from other assets

    Current year capital gains from other assets

     

    (f) 0

     

    (q) 800

    (e) + (f)

    (g) 173

    (p) + (q)

    (r) 800

    Current year capital losses from other assets applied - cannot exceed (g)

    Current year capital losses from other assets applied - cannot exceed (r)

     

    (h) 173

     

    (s) 27

    (g) - (h)

    (i) 0

    (r) - (s)

    (t) 773

    If (i) is positive it can be further reduced by prior year net capital losses.
    Prior year net capital losses from other assets applied

    If (t) is positive it can be further reduced by prior year net capital losses.
    Prior year net capital losses from other assets applied

     

    (j) 0

     

    (u) 400

    (i) - (j)

    (k) 0

    (t) - (u)

    (v) 373

    The total of the amounts at (d), (j), (o) and (u) is your prior year net capital losses applied. Write this amount at X item 14 on your tax return.

    If H is blank or equals G do not complete X.

    Lyn would write $400 at X item 14.

    Last modified: 18 Sep 2009QC 18323