I have a CGT question
If I have a property in a trust that has incurred several losses over the years, mainly through negatively gearing, can see a property in that trust for a profit and offset any CGT against the losses? Or can I only offset capital gains against capital losses?
Cheers
K
Generally, you can offset capital gains against revenue losses.
Linar wrote:I have a CGT questionIf I have a property in a trust that has incurred several losses over the years, mainly through negatively gearing, can see a property in that trust for a profit and offset any CGT against the losses? Or can I only offset capital gains against capital losses?
Cheers
K
Also need to ensure that the trust has made a Family Trust Election (assuming this is a DT) at the relevant time before the carried forward losses, whether revenue or capital, can be recouped.
Eddie
[email protected]I won't claim to be an expert on trusts (far from it) however if the property was not in a trust then you can only offset capital losses against capital losses and costs against income. Capital losses can be carried forward indefinitely. You are unable to distribute losses from a trust to the beneficiaries, so your cap losses must be offset within the trust.
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