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Re: Capital loss on main residence

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Newbie

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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.

 

 

 

 

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Taxicorn

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@TaxGuru 

 

Yes you must ignore it.

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Devotee

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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.

Newbie

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

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Taxicorn

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@TaxGuru 

 

Yes you must ignore it.

Newbie

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

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