• Step D1: Apply current year capital losses, other than capital losses 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 current year capital losses, other than 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.

    Have you shown current year capital gains for your entity at A7 to A12 in part D?

    No

    Transfer D in part B to I in part I of the worksheet, then go to step D2.

    Yes

    Does your entity have CYCLs or prior year net capital losses (PYNCLs, other than from a collectable, or capital losses transferred in?

    No

    Transfer the amounts at A7 to A12 in part D to A to F in part E and continue on from part F.

    Yes

    If your entity has CYCL, read on. If your entity has only PYNCL, transfer the amounts at A7 to A12 in part D to 3G to 3L in step D1 and then go to step D2. If your entity has only capital losses transferred in, go to step D3.

    You can choose the order in which you deduct your entity's current year capital losses (at D in part B) from the current year capital gains (at A7 to A12).

    Generally, if your entity is entitled to the small business CGT concessions, it is better to reduce the non-active asset capital gains first. Within the non-active and active categories you usually get the greatest benefit by reducing:

    1. capital gains calculated using the 'other' method, then
    2. capital gains calculated using the indexation method, then
    3. capital gains calculated using the discount method.

    At 3A to 3F, show the amounts of current year capital losses deducted in the order you have chosen with the total at H. At 3G to 3L, show the capital gains after applying (deducting) the current year capital losses.

    You can carry forward any unapplied current year capital loss other than from collectables (D in part B minus H) to reduce capital gains in later income years.

    When you have completed step D1, transfer the amount of unapplied current year capital losses (D minus H) to IUNCL from other CGT assets in part I.

    Last modified: 04 Mar 2016QC 27527