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Accounting for a tax loss carried forward

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Could someone please explain how to account for a tax capital loss carried forward i.e. incurred a tax loss through the purchase and sale of shares through a company (small business entity) of $1,000 in FY18.

From a journal perspective, how would this be reflected in the FY18 financials? I then made a capital gain on the purchase and sale of shares through the company in FY19 of $2,000. What would the journals look like in FY19 to reflect the application of the capital tax loss carried forward? Thanks. 

 

 

 

 

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Hi @ccc123

 

Thanks for your post.

 

We can't provide you with any advice about how to account for your 2017-18 capital loss and 2018-19 capital gain in your accounting journals but we can direct you to the instructions on how to declare them in your tax returns.

 

If you lodge your tax returns online using myTax (via myGov), have a look at the myTax 2018 Capital gains or losses and the myTax 2019 Capital gains or losses pages.

 

If you prefer to lodge paper tax returns, you can check out the Capital gains 2018 and Capital gains 2019 tax return instruction pages.

 

If you require some bookkeeping or accounting advice, we recommend that you engage the services of a professional.

 

Hope this helps.

 

Thanks, ChrisR

1 REPLY 1
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Most helpful response

Community Support

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Hi @ccc123

 

Thanks for your post.

 

We can't provide you with any advice about how to account for your 2017-18 capital loss and 2018-19 capital gain in your accounting journals but we can direct you to the instructions on how to declare them in your tax returns.

 

If you lodge your tax returns online using myTax (via myGov), have a look at the myTax 2018 Capital gains or losses and the myTax 2019 Capital gains or losses pages.

 

If you prefer to lodge paper tax returns, you can check out the Capital gains 2018 and Capital gains 2019 tax return instruction pages.

 

If you require some bookkeeping or accounting advice, we recommend that you engage the services of a professional.

 

Hope this helps.

 

Thanks, ChrisR