Author: SamAUD(Newbie)Newbie 12 Jan 2024
Hi, officers
I have a question on the US share investment.
If my normal work annual salary is 50,000AUD, and I paid tax 10,000 a year;
in 2021, I began to invest US shares, and made 100,000 AUD profit, then I have to pay 15,000 captial gain tax;
In 2022, the US shares lost 100,000 AUD, and I was sad, and decide to quit US share investment. and the ATO will not return my TAX 15,000 of 2021.
that's means I invest US shares make 0 profit, but I paid 15,000 AUD captial gain tax to ATO.
is it fair?
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3 replies
If you're referring to only Australian taxation @SamAUD - that is, if you're not required to submit an IRS return which would complicate things - then the capital gain calculation in 2021 was calculated and completed solely within FY21.
In FY22, if you had no gains which could be offset with the loss of AU$100k, the full amount would have been included at question 18V "Net capital losses carried forward to later income years".
In FY23, you then presumably either used that carried-in amount, in part or in full, to offset any capital gains within FY23, and then anything remaining is carried forward again. This pattern repeats until you've utilised all of that $100k loss.
Finally, if IRS taxes were withheld, you may be able to include them in Q20.
So, yes, it's fair. It's just not immediate as your gain and loss were in separate financial years.
Author: SamAUD(Newbie)Newbie 13 Jan 2024
How about I quit US shares investment after 2022;
What if I loss 100K in 2021, and make 100K in 2022, then quit.
what's difference of the tax I paid to ATO.
