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Edited version of your private ruling
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Ruling
Subject: Net capital losses carried forward
Question
Can you reduce your net capital loss amount by amounts of ordinary and exempt income?
Answer: No
This ruling applies for the following period
Year ended 30 June 2011
The scheme commenced on
1 July 2010
Relevant facts
You received government pension income.
You also received tax exempt pension supplement payments.
You included some of the government pension in your income tax return.
You also included in your income tax return, at Item 18, a net capital loss carried forward amount.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 102-10(2).
Income Tax Assessment Act 1997 subsection 102-15(3).
Reasons for decision
Net capital losses carried forward
You have included a net capital loss in your income tax return and you wish to use ordinary and exempt income to reduce this loss rather than including the ordinary income as assessable income in your tax return.
Where you have a capital loss from earlier income years you can only reduce this loss with capital gains made in the later years. A capital loss is not able to be reduced by exempt or assessable income.