Hi,
I’m a bit confused about how “net capital losses carried forward to later income years” work, and what tax deductions I’m actually allowed to claim.
I earn a salary, and I also invest in stocks and ETFs, as well as trade CFDs (forex). Over the past three years, I’ve had losses from CFD trading, which I reported under “capital gains or losses.” I also believe I selected the option to carry forward net capital losses to future income years.
My question is: how can I use these carried-forward losses if I haven’t made any profits yet?
For example, if I have $10,000 in accumulated net capital losses and no capital gains from CFDs (or other investments), can I use that $10,000 to reduce my taxable salary income this financial year? If so, how does that work? If not, do I need to wait until I have capital gains before I can use those losses? Net capital loss carried forward to later income years - is this indefinite like I can claim this 15 years from now?
Thanks
John
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