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nightman_2(Newbie)Newbie
21 June 2024

Wondering where you can apply CGT discounts, when carrying forward a capital loss.


If you are carrying forward a capital loss from last year (lets say worth 10k), and then this year, and your capital gains are 20k. If this entire 20k is eligible for a CGT discount, then will your yearly net capital gain be 0?


Similarly, if the capital loss carried forward was 10k, and the capital gain this year was 10k (5k after CGT discount), then am I correct in assuming that you are unable to apply a CGT discount given the net capital gain is still below 0?


Many thanks!

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285 views
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Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
23 June 2024

If you are carrying forward a capital loss from last year (lets say worth 10k), and then this year, and your capital gains are 20k. If this entire 20k is eligible for a CGT discount, then will your yearly net capital gain be 0?


No - capital losses are applied before discount.



Similarly, if the capital loss carried forward was 10k, and the capital gain this year was 10k


CG = 0, no losses left to carry forward.


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Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
23 June 2024

If you are carrying forward a capital loss from last year (lets say worth 10k), and then this year, and your capital gains are 20k. If this entire 20k is eligible for a CGT discount, then will your yearly net capital gain be 0?


No - capital losses are applied before discount.



Similarly, if the capital loss carried forward was 10k, and the capital gain this year was 10k


CG = 0, no losses left to carry forward.


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CGT Discount When Carrying Forward Capital Losses | ATO Community