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My partner has a capital gain of $70,000. I have a capital loss of $50,000.
Is it possible to offset my partner's (Spouse) capital gains by $50,000 by transferring my capital loss to her?
No, unfortunately, you can not do this.
Everybody completes an individual tax return and included in this is the individuals capital gain or loss if there are any.
These can not be transferred.
The income tax legislation does not allow a transfer of losses between individuals to occur, regardless of whether they are capital or income losses. Losses can only be used by an individual against their own income or captial gain and can not be transfered from one individual to another individual, as each individual is responsible for their own tax affairs.
Its very much the same as not been able to transfer your income to your partner.
Its like saying can I transfer part of my assessable income to my partner because they had no assessable income and they then get the benefit of the tax free threshold and pay no tax for up to $18,200 that I transfer to them. The legislation simply does not work in the manner you want otherwise there would be a free for all and no none would pay any income tax or capital gains tax.
Absolutely not, because for capital gains tax purposes it goes by whom is the registered owner on the title and so if she was the only one registered at the time then the captial gain is 100% theirs.
For the gain to be apportioned between the both of you, your spouse would have to have legally transfered 50% of the property to you at the time you got married or at sometime and then this would raise the seperate issue of capital gain on the transfer.
I know this may be frustrating but it just doesn't work in the manner that you would like it work, and I do not believe there is anyway around it.
You also need to be aware that the ATO run property data base checks and are actively catching individuals that are not doing the right thing such as not declaring any capital gain at all, and are applying penalties.