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  • Step D2: Apply any prior year net capital losses (PYNCL), other than PYNCL from collectables.

    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

    If your entity has prior year net capital losses, other than prior year net capital losses from collectables, that can be deducted, they must be deducted here.

    You cannot choose to defer to a later year any amount that can be deducted this year.

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    Does your entity have any current year capital gain (CYCG) remaining?

    No

    If your entity has PYNCL, complete 4A, 4B, and 4C and transfer the amount at 4C to I in part I. Go to part E

    Yes

    Does your entity have any PYNCL, other than collectables?

    • No – If your entity is a company with capital losses transferred in, go to step D3. Otherwise, transfer 3G to 3L in step D1 to A to F in part E and continue on from part F.
    • Yes – Read on
     

    Reduce the prior year net capital losses at 4A by any adjustment for commercial debts forgiven at 4B. For more information see commercial debts forgiven and refer to your entity's tax return instructions.

    Again, prior year net capital losses can be deducted from any remaining capital gains in the manner that produces the best result. See discussion for step D1. They must however be deducted in the order in which they were made-for example, a 1995-96 year capital loss must be deducted before a 1998-99 year capital loss.

    At 4D to 4I, show the amounts of prior year net capital losses (PYNCL) in the order you have chosen and the total at L. At 4J to 4O, show the capital gains after you have applied the current year capital losses and PYNCL.

    You can carry forward any unapplied prior year net capital losses (4C minus L) to reduce the capital gains in later income years.

    When you have completed step D2, transfer the amount of unapplied prior year net capital losses (4C minus L) to I-UNCL from other CGT assets in part I (together with any unapplied current year capital losses at step D1).

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    If your entity is a company with capital losses transferred in, go to step D3.

    Otherwise, transfer the remaining capital gain amounts at 4J to 4O to A to F in part E.

    Last modified: 25 Feb 2020QC 27448