Capital Loss

[inenigma]

Hi,

I have searched for topics dealing with possible tax implications of Capital Loss but, have found a dearth lack of them.

I know if I cash in on a stock (sell) that has gained in value I have to pay tax according to the schedule. Uh Duh.

What I haven't been able to find out is can I claim a taxable deduction when I have lost money on a stock when I sell it ???


Cheers,
dk

 

[Julia]

You can offset your capital losses against your capital gains.

If the losses exceed the gains, you can carry forward unused portion for use in following year.

 

[GumbyLearner]

And only on shares.

 

[inenigma]

So, for example (with all monies remaining in the trading a/c and trades under 12 mths), I sell stock "A" for a profit of $200 (buy $50, sell $250) and sell stock "B" for a loss of $125 (buy $200, sell $75). I would then be liable to pay tax on $75 (difference between profit and loss) ?? Is this correct ???

 

[GumbyLearner]

This should clarify it Inenigma

http://www.ato.gov.au/individuals/content.asp?doc=/content/36581.htm

 

[So_Cynical]

So, for example (with all monies remaining in the trading a/c and trades under 12 mths), I sell stock "A" for a profit of $200 (buy $50, sell $250) and sell stock "B" for a loss of $125 (buy $200, sell $75). I would then be liable to pay tax on $75 (difference between profit and loss) ?? Is this correct ???

Yep...u pay CGT on total capital gain.

 

[jackson8]

Hi,

I have searched for topics dealing with possible tax implications of Capital Loss but, have found a dearth lack of them.

I know if I cash in on a stock (sell) that has gained in value I have to pay tax according to the schedule. Uh Duh.

What I haven't been able to find out is can I claim a taxable deduction when I have lost money on a stock when I sell it ???


Cheers,
dk

this may also be of interest
depending on how often you trade and whether you can classify your trading as a business you may be able to claim a loss against your personal income and not necessarily a cgt event


http://law.ato.gov.au/atolaw/print.htm?DocID=AID%2FAID2001745%2F00001&PiT=99991231235958&Life=10010101000001-99991231235959

 

[inenigma]

Yeah, Thanks guys. I thought that's how it should work, but, wasn't sure.

 

[Calliope]

You can offset your capital losses against your capital gains.

If the losses exceed the gains, you can carry forward unused portion for use in following year.

Yes. Unfortunately it may be years before those of us who suffered significant capital losses by bailing out of the market in a flight to safety can put those losses to good use.

In the meantime we have to pay tax on the meagre interest our salvaged funds are earning.

Self-funded retirees get no favours from the government.

 

[Julia]

Yes. Unfortunately it may be years before those of us who suffered significant capital losses by bailing out of the market in a flight to safety can put those losses to good use.

In the meantime we have to pay tax on the meagre interest our salvaged funds are earning.

Self-funded retirees get no favours from the government.

Except that once in pension phase you cease paying tax.

Perhaps Dr Henry, in his expected review of the tax system, might work out some sort of equitable arrangement for the time when we are effectively (with inflation) paying the banks to look after our money???


I won't be holding my breath.

 

[Snagglepuss]

And only on shares.

Not sure what you mean here. It applies to any asset, not just shares.