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Capital Losses

Capital Loss

Peter Bayliss avatar
Written by Peter Bayliss
Updated over a week ago

There is a lot of confusion around capital losses and whether these can be used to offset your taxable income like negatively gearing a property can. 

Unfortunately the rules around capital losses are not the same as negative gearing. The ATO advises that Capital Losses can only offset capital gains. For example, if you make a $500 capital loss on the sale of shares, and you also make a $20,000 capital gain on the sale of your rental property, you will be able to offset your capital gain down to $19,500.

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