Show download pdf controls
  • 2 Net 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

    Complete H to M and V where appropriate; otherwise leave blank.

    All entities that are required to complete a losses schedule are also required to complete the details requested in this item if the entity has net capital losses carried forward to later income years.

    The net capital losses of a company shown at H to M include any unapplied current year net capital loss calculated in accordance with Subdivision 165-CB of the ITAA 1997.

    The entity may be required to complete a CGT schedule. For more information, see the Guide to capital gains tax 2009.

    Year of loss 2008–09

    Show at H the amount of any unapplied net capital loss made by the entity in the 2008–09 income year that can be carried forward and applied to reduce capital gains in later income years.

    If there is no net capital loss from the 2008–09 income year available to be carried forward to later income years, leave blank.

    Year of loss 2007–08

    Show at I the amount of any unapplied net capital loss made by the entity in the 2007–08 income year that can be carried forward and applied to reduce capital gains in later income years.

    If no net capital loss was made in the 2007–08 income year, or if the net capital loss made in that year has been applied in full, leave blank.

    Year of loss 2006–07

    Show at J the amount of any unapplied net capital loss made by the entity in the 2006–07 income year that can be carried forward and applied to reduce capital gains in later income years.

    If no net capital loss was made in the 2006–07 income year, or if the net capital loss made in that year has been applied in full, leave blank.

    Year of loss 2005–06

    Show at K the amount of any unapplied net capital loss made by the entity in the 2005–06 income year that can be carried forward and applied to reduce capital gains in later income years.

    If no net capital loss was made in the 2005–06 income year, or if the net capital loss made in that year has been applied in full, leave blank.

    Year of loss 2004–05

    Show at L the amount of any unapplied net capital loss made by the entity in the 2004–05 income year that can be carried forward and applied to reduce capital gains in later income years.

    If no net capital loss was made in the 2004–05 income year, or if the net capital loss made in that year has been applied in full, leave blank.

    Year of loss 2003–04 and earlier income years

    Show at M the amount of any unapplied net capital losses made by the entity in the 2003–04 and earlier income years that can be carried forward and applied to reduce capital gains in later income years.

    If no net capital losses were made in the 2003–04 or earlier income years, or if net capital losses made in those years have been applied in full, leave blank.

    Total

    Show at V the total of unapplied net capital losses carried forward to the 2009–10 income year at H to M.

    Transfer the amount at V to the Net capital losses carried forward to later income years label on your tax return.

    Example 2

    A company's results for the 2003–04 to 2008–09 income years and movement in the balances of its net capital losses are as follows:

    Year

    Net capital loss incurred

    Net capital loss applied

    Balance of net capital losses

    2003–04

    $1,000

    -

    $1,000

    2004–05

    $9,000

    -

    $10,000

    2005–06

    -

    $2,000

    $8,000

    2006–07

    $8,000

    -

    $16,000

    2007–08

    -

    $1,500

    $14,500

    2008–09

    $1,000

    -

    $15,500

    The company's loss calculation sheet shows the following progressive balances of net capital losses for the income years following the 2003–04 income year as follows:

    Year

    2004

    2005

    2006

    2007

    2008

    2009

    2003–04

    $1,000

    $1,000

    -

    -

    -

    -

    2004–05

    -

    $9,000

    $8,000

    $8,000

    $6,500

    $6,500

    2005–06

    -

    -

    -

    -

    -

    -

    2006–07

    -

    -

    -

    $8,000

    $8,000

    $8,000

    2007–08

    -

    -

    -

    -

    -

    -

    2008–09

    -

    -

    -

    -

    -

    $1,000

    TOTAL

    $1,000

    $10,000

    $8,000

    $16,000

    $14,500

    $15,500

    Complete part A item 2 as follows:

    Part A item 2: Year of loss
Label H 2008-09: $1,000
Label I 2007-08: nil
Label J 2006-07: $8,000
Label K 2005-06: nil
Label L 2004-05: $6,500
Label M 2003-04 and earlier income years: nil
Label V Total: $15,500

    Transfer the amount at V ($15,500) to the Net capital losses carried forward to later income years label on your tax return.

    End of example
    Last modified: 27 Nov 2009QC 21731