50% capital gains tax discount on shares and deducting previous years capital loses, page-8

If you have brought forward capital losses and also have current year capital gain eligible for the discount

You MUST deduct your capital losses from the capital gain and THEN apply the 50% discount to the remainder EG

2021 capital loss $20,000

2022 capital gain $60,000 (for simplicity, all is eligible for the 50 discount)

$60,000 less $20,000 = $40,000

$40,000 less 50% discount = $20,000 net capital gain


Under NO circumstances can you deduct prior losses from a capital gain AFTER the 50% discount has applied

GF