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Capital gains on MyTax with losses carried over from previous years and CGT discount

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Hello

I'm asking about filling in capital gains on MyTax and I'm confused what I need to put in.

I have the following numbers:

 

Total current year capital gains - A

Total current year capital loss - B

Losses carried over from previous years - C

Total CGT discount applied - D

 

On the top I put in my total current year capital gains and then I put net capital gain of 0 since my net capital gain for the year is less than my combined losses carried over from previous years.

 

Since my total gain is more than $10000 I have to fill in a schedule:

For current year capital gains I put in my capital gain A and loss B

For losses applied I put in my current year's loss B and prior year losses applied (In here I put in this years net capital gain subtracted by my CGT discount applied which is A-B-D)

For unapplied losses carried forward I put in my old loss subtracted by my net gain (So C - (A-B-D))

Then I put in my CGT applied which is D

 

So that adds to a net capital gain of 0 on the form but I get the error for my Total CGT discount applied with the following error:

Total CGT discount applied cannot be greater than total current year capital gains less total capital losses applied multiplied by CGT discount percentage amount

 

If someone can enlighten me what I'm doing wrong that will be much appreciated.

 

Thanks

 

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ATO Certified

Devotee

Replies 7

Hi Rick,

Thanks for your patience! When you work out your net capital gain or net capital loss, you need to base your calculation on the following order

  • 2016–17 capital losses MINUS
  • unapplied net capital losses from earlier years MINUS
  • any CGT discounts MINUS
  • the small business 50% active asset reduction MIUS
  • the small business retirement exemption or rollover.

This means if you exhaust the current year capital gains with current or previous year’s losses you don’t have a CGT discount amount. The discount can only reduce the tax payable to zero - you can't claim a refund for a capital loss.  Check out our guide to capital gains tax for more information.


We've used the scenario you outlined in your question to demonstrate how to complete the information in your return. Where:

  • Current year capital gain = A
  • Current year capital loss = B
  • Losses carried over from previous years = C
  • Total CGT discount applied = D

 

You would complete your return in myTax by entering:

  • The value for A at 'Total current year capital gain' 
  • Zero at 'Net capital gain'. This value is based on the calculation A minus B minus C; if your total value is a negative number (a loss) the instructions state to enter 0
  • A new value - E - at 'Net capital loss carried forward to later income years'. E equals  the negative value of A minus B minus C.

To complete the CGT schedule, at:

  • 'Current Year capital gains and losses' enter the value of A
  • 'Capital losses applied' enter the value of A
  • 'Unapplied net capital losses carried forward' enter the value for E.

We wouldn't use the value for D in this scenario - the prior year losses exhaust any current year capital gain.

 

Hope that helps!

19 REPLIES 19

Devotee

Replies 0

Hi @RickC, We're checking with the myTax team to find the best way to enter this information into your return. We're aiming on getting back to you in the next couple of days with an answer - thanks for your patience!

Best answer

ATO Certified

Devotee

Replies 7

Hi Rick,

Thanks for your patience! When you work out your net capital gain or net capital loss, you need to base your calculation on the following order

  • 2016–17 capital losses MINUS
  • unapplied net capital losses from earlier years MINUS
  • any CGT discounts MINUS
  • the small business 50% active asset reduction MIUS
  • the small business retirement exemption or rollover.

This means if you exhaust the current year capital gains with current or previous year’s losses you don’t have a CGT discount amount. The discount can only reduce the tax payable to zero - you can't claim a refund for a capital loss.  Check out our guide to capital gains tax for more information.


We've used the scenario you outlined in your question to demonstrate how to complete the information in your return. Where:

  • Current year capital gain = A
  • Current year capital loss = B
  • Losses carried over from previous years = C
  • Total CGT discount applied = D

 

You would complete your return in myTax by entering:

  • The value for A at 'Total current year capital gain' 
  • Zero at 'Net capital gain'. This value is based on the calculation A minus B minus C; if your total value is a negative number (a loss) the instructions state to enter 0
  • A new value - E - at 'Net capital loss carried forward to later income years'. E equals  the negative value of A minus B minus C.

To complete the CGT schedule, at:

  • 'Current Year capital gains and losses' enter the value of A
  • 'Capital losses applied' enter the value of A
  • 'Unapplied net capital losses carried forward' enter the value for E.

We wouldn't use the value for D in this scenario - the prior year losses exhaust any current year capital gain.

 

Hope that helps!

I'm new

Replies 0

I wish i could help, but i have the same problem, the online help was no help, i am still waiting for an expert to call me, have you had any luck with this?

Newbie

Replies 1

Hi AmandaE,

 

I am using myTax. I have the following:

 

Capital Gains:

Total Current Year Capital Gains ($140) 18H


i.e. Total Current Year Capital Losses ($140) 18H; however I can't seem to enter this in myTax to carry forward the Total Current Year Capital Losses ($140) 18H as myTax states that the 'Number cannot be negative'.

Please help.

 

Thanks,

Brendan

Devotee

Replies 0

Hi @Brendan,

 

Thanks for getting in touch. 18H should refer to total current year capital gains - you'd carry any losses forward to later years at 18V. Check out Step 3 in the individual income tax return supplement guide question 18.

 

Does that help? Thanks, @AmandaE

Initiate

Replies 4

I am having problems with making the CGT schedule work. 

My Capital Gain is over 10K so I need to do a schedule. From previous thread I understand approach however think there maybe a typo which I have MARKET IN RED WITH QUESTION BELOW. 

 

Net capital gain or net capital loss, you need to base your calculation on the following order

 

  • 2016–17 capital losses MINUS
  • unapplied net capital losses from earlier years MINUS
  • any CGT discounts MINUS
  • the small business 50% active asset reduction MIUS
  • the small business retirement exemption or rollover.

This means if you exhaust the current year capital gains with current or previous year’s losses you don’t have a CGT discount amount. The discount can only reduce the tax payable to zero - you can't claim a refund for a capital loss.  Check out our guide to capital gains tax for more information.


We've used the scenario you outlined in your question to demonstrate how to complete the information in your return. Where:

  • Current year capital gain = A
  • Current year capital loss = B
  • Losses carried over from previous years = C
  • Total CGT discount applied = D

 

You would complete your return in myTax by entering:

  • The value for A at 'Total current year capital gain' 
  • Zero at 'Net capital gain'. This value is based on the calculation A minus B minus C; if your total value is a negative number (a loss) the instructions state to enter 0
  • A new value - E - at 'Net capital loss carried forward to later income years'. E equals  the negative value of A minus B minus C.

To complete the CGT schedule, at:

  • 'Current Year capital gains and losses' enter the value of A
  • 'Capital losses applied' enter the value of A ( My comment is this does not seem to make any sense adding in a Capital Gain figure for a Capital loss applied ? And this is where I seem to be having problems. If you could explain that would be great and if you could explain for someone doing their tax 'online in my tax"  Thanks 
  • 'Unapplied net capital losses carried forward' enter the value for E.

We wouldn't use the value for D in this scenario - the prior year losses exhaust any current year capital gain.

ATO Certified

Devotee

Replies 3

Hi @Nick_btw,

 

Thanks for your question. The information we provided to @RickC was based on his personal situation, and it might not help you to complete your return.

 

The CGT Schedule uses the label “A” at each question on the downloadable form, and is very different to how you record the information in myTax. This may be why the example provided by @RickC isn’t working for your situation.

 

If you’re using myTax, you have a couple of different options to work out your capital gain or loss:

  • You can record all of your CGT events using the ‘CGT record keeping tool’ in the ‘Need help’ box on the Capital gains or losses page. This tool allows you to include all of the information associated with your assets (including details regarding the cost base), and calculates the final values for you.
    If you need help using the tool, click the Help icon (the ? mark) on the right hand side of your screen for detailed instructions and a step-by-step video.
  • You can also choose enter the dollar value of your capital gain or loss into myTax if you’ve already worked it out. Some people prefer using the Guide to capital gains tax and calculate their loss or gain manually using the capital gain or loss worksheet. If you prefer to use this method, it’s important to keep a copy of your calculations in case you need to refer to them in the future, or if we ask you to explain your reasoning.

 

We can answer general questions about CGT here on the Community, so if you have any other questions please let us know! We do recommend against providing personal details, however, so if you’d prefer to talk to us in a secure environment, you can also request a webchat between 8:00am and 10:00pm Monday to Friday.

Thanks

Initiate

Replies 0

Hi AmandaE,

Thanks for your response. 

 

I think my confusion lies with ATO Net  Capital Gain explanation/defination: 

 

"Your net capital gain is: Your total capital gains for the year (including those distributed by a managed fund or trust)'

minus 'Your total capital losses (including any net capital losses from previous years)' minus 'any CGT discount

and small business CGT concessions you're entitled to'

 

However when I try to apply the above definition in MYTAX On line I get the following error:

 

  • Total CGT discount applied cannot be greater than total current year capital gains less total capital losses applied multiplied by CGT discount percentage amount

Here is a purely hypothetical example. 

 

This years capital gains:                                               30,000

This year capital loss :                                                  15,000

Previous years losses carried forward:                           8000

 

Then when I apply CGT amount of:                                5000

 

I get the above error as above 

  • Total CGT discount applied cannot be greater than total current year capital gains less total capital losses applied multiplied by CGT discount percentage amount

Note in this hypothetical example my total capital gain on shares held for more than 12 months was 10,000 so CGT discount should be 5,000 shouldnt it ? 

 

Thanks for your help.

 

Nick 

 

 

 

 

 

Initiate

Replies 1

Hi AmandaE,

Thanks for your response. 

 

I think my confusion lies with ATO Net  Capital Gain explanation/defination: 

 

" Your net capital gain is: Your total capital gains for the year ( including those distributed by a fund managed fund or trust) minus " Your total capital losses ( including net capital losses from previous years) minus any CGT discount  and small business CGT concessions you're entitled to" 

 

 

However when I try to apply the above definition in MYTAX On line I get the following error:

 

  • Total CGT discount applied cannot be greater than total current year capital gains less total capital losses applied multiplied by CGT discount percentage amount.

Here is a purely hypothetical example. 

 

This years capital gains:                                               30,000

This year capital loss :                                                  15,000

Previous years losses carried forward:                           8000

 

Then when I apply CGT amount of:                                5000

 

I get the above error as above 

 

  • Total CGT discount applied cannot be greater than total current year capital gains less total capital losses applied multiplied by CGT discount percentage amount.

 

Note in this hypothetical example my total capital gain on shares held for more than 12 months was 10,000 so CGT discount should be 5,000 shouldnt it ? 

 

Thanks for your help.

 

Nick 

 

 

 

 

 

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