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Step 3 Offset any capital losses

Last updated 9 August 2021

If you have any capital losses for the current year or losses carried forward from a previous year, you must use them to reduce the capital gain before applying any of the remaining concessions.

Start of example

Example: capital losses
In the same year as Lana made the $17,000 capital gain on the sale of land, she also made a capital loss of $3,000 from the sale of another asset.

She must offset the loss against the gain before applying any of the remaining concessions, as follows:

$17,000 − $3,000 = $14,000

Lana may be able to reduce her capital gain further using the CGT discount and one or more of the other small business CGT concessions.

End of example