Hi All
I've got a capital loss (circa $2k) that I am carrying forward from prior years. Other than being better at the shares game, any suggestions on how to utilize?
Thanks
Capital Loss Carried Forward from Prior Years - Best Use?
marchozb on 20/02/2025 - 11:56
Comments
Wow why didn't I think of this
Best answer
Make a $2k capital gain
"The one secret the ato doesn't want you to know."
Index funds rebalance often, this triggers capital gains which will eat up your loss fairly quickly.
This was what I was leaning towards
what's the rush, it will carry forward indefinitely. you can utilise later eg. career break or when you tax bracket reduces
Can only be used against a capital gain
which is taxed at your marginal rate in the FY of disposal if held in your name
a capital loss can't be applied against regular income (or lack of) so a career break or movement in tax bracket wouldn't change anything
@marchozb: where did I say it could? the losses are offset against capital gain, your capital gain in your own name is then assessed according to your marginal rate in the FY of future disposal. it's a common strategy to defer capital gain to a FY when you expect your personal tax bracket is lower if you are holding assets in your own name
Buy a house and then resell it for profit.
You can only offset a capital loss against a capital gain
Make a $2k capital gain.