# Capital Loss on Company Listed Options?



## Shehan (16 September 2008)

Hi guys, I have a question regarding company listed options (i.e. traded on the ASX, such as FWLO etc.)

I purchased a batch of company listed options earlier this year, however their value rapidly decreased and I pretty much forgot about them. Unfortunately during the time they were expiring I was unable to sell them for what little they were worth (due to being overseas). Hence, I was wondering if I am still able to claim a capital loss on my initial outlay even though I never sold them?

I have searched the forum, but unfortunately can only find info on exchange traded options, so any help you would be able to provide would be greatly appreciated!

Thanks!!


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## mazzatelli1000 (16 September 2008)

Shehan said:


> Hi guys, I have a question regarding company listed options (i.e. traded on the ASX, such as FWLO etc.)
> 
> I purchased a batch of company listed options earlier this year, however their value rapidly decreased and I pretty much forgot about them. Unfortunately during the time they were expiring I was unable to sell them for what little they were worth (due to being overseas). Hence, I was wondering if I am still able to claim a capital loss on my initial outlay even though I never sold them?
> 
> ...




It will depend on what your overall business is. If you are classified as a trader where this is your ordinary business, the options will be treated as being your trading stock and will reduce your assessable income at the end of the year. 

If it is a one off - then a capital loss will be occur, no matter if you don't transact. This will be CGT Events C1 to C3 Subdivision 104-C of the Income Tax Assessment Act 1997. 

Note you will only be able to offset that capital loss against future CAPITAL gains and not your assessable income.

Hope that helps


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## son of baglimit (16 September 2008)

these company options are treated exactly like shares.

ie when they expired, without you exercising them, they became officially worthless and eligible to be declared a capital loss on the date of expiry.


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