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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
    Posts:
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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. 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