I have had a negatively geared investment property since 2019. I retired in July 2025 and have only income from super which is not taxed. I assume that in future years whilst I still incur a tax loss from the property that the loss can be carried forward as I have no taxable income.
When I come to sell the investment property, the CGT will be a minimum of 30%.
What them happens to the tax losses which have been carried forward over the years, as it is my understanding that non capital losses cannot be offset against capital gains.
Eg. I have carried forward losses of $30,000 in the year the property is sold and no other taxable income in the year.
The Capital Gain on sale is $200,000 so will the tax be $60,000 ($ 200,000 x 30%).
What then happens to the carried forward losses in the year of sale ?
1) You can't reduce the Capital gain to $ 170,000 ($200,000 - $30,000)
2) Is tax on the $30,000 calculated and then the CGT of $ 60,000 is reduced ?
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