Announcements
Looking for information on the JobKeeper extension? Check out our answers to common questions the community has been asking.

ATO Community

Re: Capital loss on main residence

Highlighted

Newbie

Views 678

Replies 4

If someone has a main residence which they predict will sell at a loss can they claim the capital loss against any other capital gains?

Section 118.1 ITAA1997 states you can ignore a capital loss not that you must ignore it.

The ATO also doesn't specify disallowing claiming capital losses from main residence.

 

 

 

 

1 ACCEPTED SOLUTION

Accepted Solutions
Highlighted

Most helpful response

Taxicorn

Replies 1

@TaxGuru 

 

Yes you must ignore it.

4 REPLIES 4
Highlighted

Devotee

Replies 3

I can't see how you can claim a tax loss on a non income producing asset? If it's not taxable, there is also no loss implications.

Highlighted

Newbie

Replies 2

CGT applies to real estate. You can ignore the CGT event if it was your main resident but it doesn't say you must.

Highlighted

Most helpful response

Taxicorn

Replies 1

@TaxGuru 

 

Yes you must ignore it.

Highlighted

Newbie

Replies 0

no you can ignore - refer to section 118.100 of ITAA 1997