50% discounted Capital Gain - Capital Loss.

Have searched through a few old threads but can't find my answer clearly enough.

- Sell house held for > 12 months realising a $20k capital gain that can be discounted 50%.
- Carry forward a $10k capital loss from a previous financial year.

What is the correct method for calculating the capital gain due?

Is it: (($20k - $10k)/2) so should be $5k capital gain?
Or: (($20k/2) - $10k) so no capital gain due?

The ATO site seems to indicate that the first method is correct but there was a previous topic on this forum that indicates the second method is possible.

Thanks in advance,

Gools
 
Gools

The first method is correct. Capital gains are offset against capital losses and any remaining CG is then discounted.

Cheers
LynnH
 
Yeah, the ATO is not so good at the 'giveth' part, but very good at the 'taketh away' bit!

Cheers
Lynn

Nice one Lynn. Basically the rule is always select the method that puts more money into Rudds pocket. You know the money you give away that you never see back in hand-outs but still blow your credit rating by getting the country into debt levels not seen by you or I.
 
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