Step A2.2: Apply any prior year net capital losses (PYNCL) from collectables
This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
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If your entity has prior year net capital losses that can be deducted, they must be deducted here. You cannot choose to defer to a later year any amount that can be deducted this year.
Does your entity have any remaining current year capital gains from collectables?
If your entity has prior year net capital losses (PYNCL), complete 2A, 2B and 2C, and transfer the amount at 2C to H in part I. Go to part A3.
Does your entity have a prior year net capital loss from collectables?
No – Transfer the amounts at 1E,1F and 1G in step A2.1 to J,K and L in part A3 and continue on from part A3.
Yes – Read on
At 2C, show the available prior year net capital losses from collectables after you have made any necessary adjustments for commercial debts forgiven shown at 2B. For more information on commercial debts forgiven, see Debt forgiveness and refer to your entity's tax return instructions.
Again, PYNCL from collectables can be deducted from any remaining capital gains from collectables in the manner that produces the best result. They must, however, be deducted in the order in which they were made – for example, a 1995–96 year capital loss should be deducted before a 1998–99 year capital loss.
At 2D to 2F, show the amounts of prior year net capital losses from collectables in the order you have chosen.
At 2G, show the total amount of prior year net capital losses from collectables that have been deducted from the current year capital gains from collectables.
At J, K and L in step A2.2, show the capital gains from collectables after you have applied the current year capital losses and prior year net capital losses from collectables.
You can carry forward any unapplied net capital losses from collectables (2C minus 2G) but in later income years you can only use them to reduce any capital gains from collectables (not from other CGT assets).
When you have completed step A2.2, transfer:
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- the amounts at J, K and L to the corresponding labels in part A3, and
- the amount of unapplied prior year net capital loss from collectables (referred to above) to H UNCL from collectables in part I (together with any unapplied current year capital losses from collectables at step A2.1).