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Loss on PPOR

Discussion in 'Accounting & Tax' started by Bennny, 14th Jul, 2015.

  1. Bennny

    Bennny New Member

    Joined:
    14th Jul, 2015
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    Location:
    Land Down Under
    I've made a loss on a principal place of residence. 10% of the floor area was used as a home office.

    Does the claimable loss offset future CGT events, or is it offset against this year's income?
     
  2. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

    Joined:
    18th Jun, 2015
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    2,384
    Location:
    Sydney
    CGT losses never offset ordinary income. They carry forward.
    In your calculation of the capital loss did you adjust for third element cost base items ??

    A home office will generally not give rise to a partial non-exempt CGT loss. A home used as a place of business different. Read Ruling IT 2673 Understanding the difference is essential as it affected deductions as well as CGT.

    https://www.ato.gov.au/General/Capi...#Third_element__costs_of_owning_the_CGT_asset