Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_1:p6
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 6/9)
Character Range: 17751–20391

the income year. Also add up the *capital losses you made.

           Step 2. Subtract your *capital losses from your *capital gains. (If your capital losses exceed your capital gains, you have no net capital gain for the income year.)

                  Note: You do have a net capital loss if your capital losses exceed your capital gains: see section 102‑10.

           Step 3. If the Step 2 amount is more than zero, reduce it by applying any unapplied *net capital losses from previous income years. (If this reduces it to zero, you have no net capital gain for the income year.)

                  Note: To apply net capital losses: see section 102‑15.

           Step 4. If the Step 3 amount is more than zero, it is your net capital gain for the income year.

Note: For exceptions and modifications to these rules: see section 102‑30.

 (2) However, if during the income year:

 (a) you became bankrupt; or

 (b) you were released from debts under a law relating to bankruptcy;

any *net capital loss you made for an earlier income year must be disregarded in working out whether you made a *net capital gain for the income year or a later one.

 (3) Subsection (2) applies even though your bankruptcy is annulled if:

 (a) the annulment happens under section 74 of the Bankruptcy Act 1966; and

 (b) under the composition or scheme of arrangement concerned, you were, will be or may be released from debts from which you would have been released if instead you had been discharged from the bankruptcy.

102‑10  How to work out your net capital loss

 (1) You work out if you have a net capital loss for the income year in this way:

      Working out your net capital loss

           Step 1. Add up the *capital losses you made during the income year. Also add up the *capital gains you made.

           Step 2. Subtract your *capital gains from your *capital losses.

           Step 3. If the Step 2 amount is more than zero, it is your net capital loss for the income year.

Note: For exceptions and modifications to these rules: see section 102‑30.

 (2) You cannot deduct from your assessable income a *net capital loss for any income year.

Note: However, it can be applied against your capital gains for a later income year: see section 102‑5 and subsection 102‑15(3).

102‑15  How to apply net capital losses

 (1) In working out if you have a *net capital gain, your *net capital losses are 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