Is this "loss" carried forward or just lost?

I'd like to understand how tax works in this scenario.

Owner holds one IP and has a job. Job disappears, and rent also falls at lease renewal time.

This means the only income is rent from the IP (no job). Interest and costs for that IP exceed the rent by $10k.

Is this "loss" carried forward to the next tax year?

 

Thanks Terry and Ross.

We will be listing another property within a month. If we get a contract before 30 June and it continues through to a successful settlement, that would mean I make a capital gain in this financial year (even if it settles after July 1st) and that will be my other income for the year.

The capital gain will be added to the rent, and will mean I can deduct the interest and expenses for the "keeper" to the capital gain for the "sold" property, which will lower the tax paid on my income for this financial year (consisting of rent and the capital gain).

If we don't get a sale contract until after July 1st, then the "loss" I've outlined in my first post will carry forward and help to offset the rent for the "keeper" plus the capital gain for the "sold" property but it would all happen in the next financial year.

Does that sound right?

(I also understand that the important date for capital gains tax calculation is the contract date but for land tax it is what we "own" on 30 June so our hope is that we would settle before 30 June.)

 

Thanks so much. Much appreciated.