Hi all Is anybody able to confirm whether capital gains are discounted before being offset by carried forward capital losses? e.g. Say I'm sitting on $100K of capital losses and I make a $150K capital gain (over a 2 year period). Which of the following is correct? 1) $150K gain gets reduced to $75K gain due to 50% discount for holding over 12 months. $75K gain is offset by $100K carried forward capital loss. No tax payable, still have $25K capital loss carried forward. 2) $150K gain gets offset by $100K carried forward loss. $50K gain is reduced to $25K gain due to 50% discount. Tax payable on $25K gain, no capital loss carried forward. I'm 99% sure it's option 1, and the ATO website seems to agree, but the ATO website is notoriously opaque about a lot of things... Cheers!