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Online Share Trading

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CGT

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Not applicable
Is it possible to deduct a capital loss from equity (Incurred 2 years ago) from a capital gain made this year on property? If so what are the ramifications?
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14 REPLIES 14
Not applicable
.whassup, dude? Tradin down from yer 'Tuscan' villa?
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Preston
Super Contributor
Gees Dude , Now you want me to talk all intelligent again? Rememebr the formulae is Capital gain made during the year of assessment Less Capital loss made during the year of assessment This will give you Net Capital loss/gain Less Assessed Loss carried forward This will give you Capital gain /loss for teh year Less primarly rabate (not sure how much) To answer your question ,if part of assessed loss "yes" else "no"
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Not applicable
SI, don't hold me to this, but the loss would probably have been included in your taxable income in the year in which it was incurred, and would therefore probably have reduced your taxable income for that year, so it has already been "carried forward" by the inclusion in your taxable income in that year, so can't really be "set off" against your capital gain in this year.
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Building a byway over my pipe, cashing out.
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It is my understanding that a loss is carried forward until there is a gain and then set off against that.
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Preston
Super Contributor
Yes. Part of Assessed loss.
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CHATTYCHAT
Super Contributor
My understanding: Capital gains (reduced by rebates, etc) are taxed abd dealt with in the year of accrual. Capital losses are carried until absorbed by gains in future years.
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Not applicable
shot alot
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Chrzaszcz
Contributor
So does this mean that a loss on trading shares or derivatives can be offset against one's income for the year? I am new to this game and losing money beautifully, so it would be nice to at least pay a bit less tax.
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Preston
Super Contributor
Yes. The new tax legislation allows for that.
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Chrzaszcz
Contributor
Thanks Preston. Will educate my tax consultant accordingly :)
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CHATTYCHAT
Super Contributor
My understanding: if you're a salary man and trade on the side you'll be a trader for I(ncome) T(ax) P(urposes): your nett losses will be capped and set off against taxable profits in future years to determine a taxable income from trading. If your primary income is from trading and you suffer a loss you have no tax problem - only cash flow problems :-), and other income, fees or income from part time services rendered, will be taxed after setting off the trading loss for ITP.
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Chrzaszcz
Contributor
Not sure I understand, Chattychat - do you mean if my primary income is from other means than trading, then all the trading profits/losses will be ring fenced?
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Preston
Super Contributor
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