Announcements
Worried you’re missing part of your refund? Remember, the low and middle income tax offset isn’t a refund on its own – it’s used to offset (or reduce) the amount of tax you pay. The offset amount you may be entitled to is automatically applied and could range between $255-$1080, depending on things like your taxable income and how much tax you’ve paid.
Still not sure? Ask the Community

ATO Community

CGT and Collectables

This post is archived and may not be up-to-date.

Enthusiast

Views 961

Replies 3

Hello There

A previous Year's Capital Loss from COLLECTABLES can be applied to later net Capital Gains. But is it discretionary? If, say next year, I make a Collectables net Capital Gain and my Taxable Income is below the tax threshold, can I continue to C/F the previous Capital Loss? That is, not apply it?

 

ITAA 1997: 108-10 Losses from collectables to be offset only against gains from collectables

(4) If some or all of a *capital loss from a *collectable cannot be applied in an income year, the unapplied amount can be (CAN BE???) applied in the next income year for which your *capital gains from *collectables exceed your *capital losses (if any) from collectables.

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Taxicorn

Replies 1

@Goldman 

 

It must be used at the first opportunity regardless of income.

 

3 REPLIES 3

Most helpful response

Taxicorn

Replies 1

@Goldman 

 

It must be used at the first opportunity regardless of income.

 

Enthusiast

Replies 0

One final quick question,

Thanks for letting me know: "It must be used at the first opportunity regardless of income".

I've applied income losses that way. But haven't yet needed to apply a capital loss. 

 

Can Companies apply previous income losses or capital losses whenever it suits them? I have a vague recollection reading they can. And for a long time I've doubted I read it it correctly.

 

 

ATO Certified Response

Community Moderator

Replies 0

Hi @Goldman

 

Thanks for your question.

 

When completing the Company tax return (refer to our website), subject to various rules, prior year tax losses are deducted in a later income year or years in the order in which they were incurred, to the extent that they have not already been deducted.

 

For more information, have a look at the R Tax losses deducted question of the Company tax return instructions 2019 page on our website.

 

Regarding how to account for a capital loss from a previous year, check out the A Net capital gain question.

 

Hope this helps.

 

Thanks,

 

ChrisR