Your net capital losses to be carried forward is the total of:
- any unapplied current year net capital losses from step 5
- any unapplied prior year net capital losses from step 6
- any 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 these can only be used to reduce capital gains from collectables in later income years.
Show this amount (if any) at V and remember to deduct these losses from any capital gains in future income years.
Example: Net capital losses to be carried forward-V item 17
Kathleen has deducted all her current year capital losses (except those from collectables) and her prior year capital losses 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 shows $500 at V.
Kathleen must make a note of this capital loss for next year, in the same way as she did with the prior year losses 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.End of example