• Step 10 Capital losses carried forward to later income years

    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

    Your net capital losses amount to be carried forward is the total of any:

    • unapplied current year net capital loss from step 5
    • unapplied net capital losses from earlier years from step 6
    • capital losses from collectables to be applied in future income years from step 3. You will need to keep a separate record of unapplied net capital losses from collectables because you can only use these to reduce capital gains from collectables in later income years. There is no time limit on how long you can carry over the net capital losses.

    Write this amount (if any) at V item 18 on your tax return (supplementary section). Remember to deduct these losses from any capital gains in future income years.

    Example 109: Net capital losses to be carried forward - V

    Kathleen has deducted all her current year capital losses (except those from collectables) and her net capital losses from earlier years from her capital gains in the order that gave her the best result. This means she will only have capital losses from collectables to carry forward to a later income year. Kathleen writes $500 at V item 18 on her tax return (supplementary section).

    Kathleen must make a note of this capital loss for next year, as she did with the unapplied net capital losses from earlier years that she used this year. She must also note that her capital losses this year are capital losses from collectables, as she will only be able to deduct them against capital gains from collectables in a future year.

    Last modified: 09 Mar 2010QC 27956