Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_1:p7
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 7/9)
Character Range: 20184–22781

applied in the order in which you made them.

 (2) A *net capital loss can be applied only to the extent that it has not already been applied.

 (3) To the extent that a *net capital loss cannot be applied in an income year, it can be carried forward to a later income year.

Example: You have capital gains for the income year of $1,000 and capital losses for the income year of $600. Your capital losses are subtracted from your capital gains to leave a balance of $400.

 You have available net capital losses of $300 (for last year) and $200 (for the year before that).

 The $400 is reduced to zero by applying the available net capital losses in the order in which you made them. This leaves $100 of the $300 to be carried forward and extinguishes the $200.

Note: For applying a net capital loss for the 1997‑98 income year or an earlier income year: see section 102‑15 of the Income Tax (Transitional Provisions) Act 1997.

102‑20  Ways you can make a capital gain or a capital loss

  You can make a *capital gain or *capital loss if and only if a *CGT event happens. The gain or loss is made at the time of the event.

Note 1: The full list of CGT events is in section 104‑5.

Note 2: These Divisions of Part IIIA of the Income Tax Assessment Act 1936 continue to have effect for the purposes of working out capital gains and capital losses under this Part and Part 3‑3:

                  * Division 17A (about roll‑over relief on certain disposals of assets of small businesses);

                  * Division 17B (about disposal of small business assets where the proceeds are used for retirement);

                  * Division 19A (about transfers of assets between companies under common ownership).

 See sections 160ZZPJA, 160ZZPZAA and 160ZZRAAAA of that Act.

102‑22  Amounts of capital gains and losses

  Most *CGT events provide for calculating a *capital gain or *capital loss by comparing 2 different amounts. The amount of the gain or loss is the difference between those amounts.

102‑23  CGT event still happens even if gain or loss disregarded

  A *CGT event still happens even if:

 (a) it does not result in a *capital gain or *capital loss; or

 (b) a capital gain or capital loss from the event is disregarded.

Example: Lindy sells a car. Section 118‑5 says that any capital gain or loss from a CGT event happening to a car is disregarded. However, the sale is still an example of CGT event A1.

102‑25  Order of application of CGT events

 (1) Work out if a *CGT event (except *CGT events D1 and H2) happens to your situation. If more