Making a loss when selling my first IP - can I claim this loss as a tax deduction?

Discussion in 'Accounting & Tax' started by Miss Monopoly, 28th May, 2019.

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  1. Miss Monopoly

    Miss Monopoly Well-Known Member

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    Hi,

    I have tried searching the ATO for the answer to this question but don't seem to get a straight answer.

    I may be selling my first IP at a loss of about $50000 - $70000.

    When I lodge my tax return do I offset this loss against my income for the financial year? or does it just get carried forward to offset any future capital gains (not sure I will have any future capital gains as this one stings a bit)

    Any advice appreciated.......thanks in advance
     
    Miss Monopoly, 28th May, 2019
    #1
  2. Trainee

    Trainee Well-Known Member

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    If you cant find capital losses on the ato website.... get an accountant. Your 50-70k number is also suspect.
     
    Trainee, 28th May, 2019
    #2
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    You can't
     
    Terry_w, 28th May, 2019
    #3
  4. Miss Monopoly

    Miss Monopoly Well-Known Member

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    Thank you
     
    Miss Monopoly, 28th May, 2019
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  5. Propertunity

    Propertunity Well-Known Member

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    My understanding is that you can only offset a capital loss against a capital gain.

    Also lenders will not allow you to sell at such a loss unless you can come up with the cash to make up the shortfall in funds when paying out the mortgage at settlement
     
    Propertunity, 28th May, 2019
    #5
  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Capital losses carry forward until you later offset a gain. It should be claimed in the year when the contract is made.
     
    Paul@PAS, 28th May, 2019
    #6