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Class action shareholder settlement

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Newbie

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I have received a payout as a result of a shareholder class action settlement. I have previously claimed a capital loss for these shares as thay are no longer worth anything (not tradable). How is the settlement treated tax wise? I am assuming the original capital loss is reduced by the settlement amount and accounted for in capital losses carried forward. Thanks in advance. 

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ATO Certified

Community Manager

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Hi @Billy11

 

It depends on what the settlement amount was for. The approach you suggest is appropriate if the whole amount is for compensation for loss of the shares.

 

Also, keep in mind that the capital loss that you claimed for the worthless shares needed to have met the relevant requirements for claiming the capital loss in that year.

 

NicolaC

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Community Manager

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Hi @Billy11,

 

We will look into this one and get back to you.

 

KylieS

 

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Best answer

ATO Certified

Community Manager

Replies 0

Hi @Billy11

 

It depends on what the settlement amount was for. The approach you suggest is appropriate if the whole amount is for compensation for loss of the shares.

 

Also, keep in mind that the capital loss that you claimed for the worthless shares needed to have met the relevant requirements for claiming the capital loss in that year.

 

NicolaC