Transferring capital loss from personal to business?

[highlowlowhigh]

Hi guys,

Can anyone please help me ?

I've got some personal shares that Im holding on to, which are under at the moment.

Im thinking of starting a company/business and transfer my personal shares to the company. If I sell them after transferring to a company (which might be at a loss), will the loss be recognised by the tax guys ?

Am I able to transfer the shares in the first place ?

Thanks in advance !

 

[suhm]

speak to an accountant for correct advice but you would have to transfer the shares at market value so you would crystallise any cap loss on the personal account when you did transfer the shares.

 

[cutz]

Im thinking of starting a company/business and transfer my personal shares to the company. If I sell them after transferring to a company (which might be at a loss), will the loss be recognised by the tax guys ?

Hi high,

If you want to crystallize a loss why don't you just sell your shares on market and move on ?

Sounds like you may be in denial. Claiming a loss but keeping your shares may make you feel better but ultimately you still hold a dog.

 

[highlowlowhigh]

Hi high,

If you want to crystallize a loss why don't you just sell your shares on market and move on ?

Sounds like you may be in denial. Claiming a loss but keeping your shares may make you feel better but ultimately you still hold a dog.

nooo not in denial, i wanna take advantage of the cgt, it's less tax than personal income. but yeah, the crystallising loss bit was the one i wasn't hoping it would be. im gonna have to sell, climb up (optimistic person hey?)..then transfer if that's the case.

but yeh..heading to an accountant this week, id have to bite the dust..sell and make up the loss...seems like that's the verdict.

 

[rbourne1]

I agree with suhm. You can't transfer the shares to your company without a sale and cgt event taking place. The loss would be incurred in your own name as you have to use market value in any transfer.

 

[cutz]

Sorry high,

Re read your opening post and i've just realized i misinterpreted it the first time looked at it. What the other two guys have suggested is also how I reckon the tax office will view it (CGT event on transfer).

Just be careful as the ATO may argue it to be a wash sale in the event of an audit even though that may not be your intention.

Anyway check this the accountant, tax rules have become a nightmare.