Capital losses lost on death

Older investors need to be aware that capital losses are lost on death, however capital profits pass onto their estate.
If you have investments with accumulated losses, you sell these assets together with other assets with accumulated profits and offset them.
This maintains the health of you portfolio and allows you to make new decisions going forward on more appropriate investments.

 

That only applies to accumulated (realised) capital losses tho.

Unrealised losses also pass to beneficiaries because they pick up the assets at original cost for cg purposes, yes?

so if john buys a share at $5 and market value is $2, then theres no specific benefit to selling it unless there are other capital gains. If john dies the beneficiary will acquire the shares with a cost base of $5. If the beneficiary then sells at $2 the beneficiary gets the $3 capital loss?

 

Yes

Tax Tip 281: Sale of Assets at death at a Loss – What a Waste! Tax Tip 281: Sale of Assets at death at a Loss – What a Waste!

Tax Tip 188: Use Capital Losses Quickly – Recycle debt + death Tax Tip 188: Use Capital Losses Quickly – Recycle debt + death

 

Yes that is correct, however if the Estate wishes to sell the shares rather than transfer them, then this becomes a significant issue,

 

then the issue is a competent executor and knowledgeable beneficiaries.

 

And also the will