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Part C

Last updated 3 March 2016

Step 10 – Capital losses carried forward to later income years

Your net capital losses amount 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, and
  • 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 item 17 on your tax return (or item 9 if you are using the tax return for retirees). Remember to deduct these losses from any capital gains in future income years.

Start of example

Example – Net capital losses to be carried forward – V

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 item 17 on her tax return (or item 9 if she uses the tax return for retirees).

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

Read this first

Instructions for companies, trusts and funds (entities)

Individuals: if you use the worksheets and need help completing them, read steps 1, 2 and 3 in this part (ignore the word entity).


Steps you need to take

Step 1 – How to complete the Capital gain or capital loss worksheet for each CGT event

Step 2 – How to complete the CGT summary worksheet

Step 3 – How to complete the capital gains item on your entity's tax return

Step 4 – How to complete the CGT schedule