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Can prior year business loss be claimed against capital gains from share investment?

Newbie

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Hi,

 

My client is trading through a trust under courier business. The trust have business loss from prior years.

They also have investments in the Trust. Can they apply the prior year loss on capital gains on share investment of the Trust?

 

Regards.

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Most helpful response

ATO Community Support

Replies 0

Hi @Mango1,

 

Business and capital gains losses are treated separately. 

 

If certain criteria are met, business losses can be carried forward and used to reduce the net income in a future year. 

 

Capital losses are also carried forward and used to offset a capital gain in a future year.

 

We have some awesome information on our website you might want to check out.

 

Trust loss provisions

 

Trust Capital gains losses

 

All the best for your business.

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @Mango1,

 

Business and capital gains losses are treated separately. 

 

If certain criteria are met, business losses can be carried forward and used to reduce the net income in a future year. 

 

Capital losses are also carried forward and used to offset a capital gain in a future year.

 

We have some awesome information on our website you might want to check out.

 

Trust loss provisions

 

Trust Capital gains losses

 

All the best for your business.