Capital losses can be used to reduce capital gains in the current financial year, and better still, what can't be used in the current year can be carried forward to reduce future year capital gains.
There is no expiry date on capital losses so its important to keep track of the available balance year after year so they don't get lost or forgotten.
How do I add Capital Losses?
If you have prior year capital losses you can add an opening balance in TaxTank which will be used in the CGT report when calculating any net capital gains for the current year. Any balance at the end of the current year will automatically become the opening balance in the next financial year to ensure nothing is ever missed.
To add or edit an opening balance select 'Setting' from the top dropdown to open the General Tab. Then simply add the opening balance from your prior year tax return in the Capital Loss field and press the 'Save' button.
How are Capital Losses Used?
The opening capital loss amount will appear in the CGT Report to be automatically applied to any current or future year capital gains or losses.
Want to learn more about the CGT Report? Check out How does the CGT Report Work?
