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  • Step 4-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, and no capital loss from an earlier year that you were told to carry forward to this year, go to step 5.

    Otherwise, from the amount you wrote at H, you can now deduct your capital losses. 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 7.


    Let us assume that Tim had a loss from a sale of shares of $200. Tim deducts the $200 from the $800 grossed up amount to arrive at $600. He applies the CGT discount to this $600.

    End of example

    Handy hint

    The greatest benefit is probably to deduct capital losses from capital gains distributed from the fund in the following order:

    1. 'other' capital gains
    2. indexation method capital gains, and then
    3. discount method capital gains.
    Last modified: 06 Oct 2009QC 16182