The short version: A capital loss is when you sell something for less than you paid for it. Property, shares, crypto, a car. If you made a loss on the sale, that counts.
How does this affect my tax?
Losses are actually useful. You can offset a capital loss against any capital gains you’ve made in the same tax year. That reduces your taxable profit, which means less CGT to pay.
Didn’t make any gains this year? You can carry the loss forward to use against future gains. Just make sure you report it on your tax return so it’s on record.
You can also claim losses on assets you still own if they’ve become essentially worthless.
Any rules to know?
You can only offset capital losses against capital gains, not against other income like your salary. And if you sold or gave something to a family member at a loss, you generally can’t use that loss unless you’re also offsetting a gain from the same person.
Made a loss and want to make sure it’s recorded properly? Let us help you get it on your return.
