$1!!!, page-28

"So my tax agent lied to me, because i called H and R block and he said no, they must be in different financial yrs to do this"

pete11,

You can deduct all of the Capital Losses you have made in a financial year, including any previous losses that you had carried forward from previous years (if any), from any Capital Gains that you have made during a year of income.

Capital Losses can only be offset against other Capital Gains and are not allowed to be used to reduce the ordinary Taxable Income of a Taxpayer. And, if there are no Capital Gains during that Income Year, they can only be carried forward to be used as deduction against any future Capital Gains.

If the gains are sufficient, and exceeds the total amount of Capital Losses you have accumulated to date, then you will pay tax on the balance of your Capital Gains at the Tax rate applicable to your individual case.

If the Capital Gains are not sufficient to cover and negate/offset the losses you have accumulated, then the balance of those losses will be carried forward to the next year of Income, and so forth.

If you are a share trader, then the case is totally different. For, there will be no Capital Gains, and all of the Income you receive from the trading of shares, will be treated as normal Taxable Income.

This is the way I interpret it, and please DYOR.

Cheers,

Buddy