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  • Step 8-Applying capital losses against capital gains



    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 you have no capital losses from assets you disposed of this year, nor a capital loss from an earlier year that you were told to carry forward to this year, go to step 9.

    Otherwise, you can now deduct your capital losses from the amount you wrote at H. You may do this in the order that gives you the greatest benefit.

    If your capital losses are greater than your capital gains, go to step 11.


    If we go back to the assumption we made at step 6 (Fred selling his shares for $4,000), and if we assume Fred has no other capital gains or capital losses, Fred had a $1,075 net capital loss that he can carry forward to future years.

    End of example

    Handy hint

    The greatest benefit is probably to deduct capital losses against:

    1. capital gains for which neither indexation nor the discount method applies (that is, if you bought and sold your shares within 12 months)
    2. capital gains calculated under the indexation method, and then
    3. capital gains to which the CGT discount can apply.
    Last modified: 06 Oct 2009QC 16182