Capital Losses

I wish to know the implications if I was to sell my shares at a loss prior to year end and then purchase them back in the new financial year.

A: Thanks for the question.

This is probably best addressed by your accountant, but provided you take market risk and the transactions aren’t “wash” trades, then they should be ok.

Please note the following:

  1. a) you can only offset capital losses against other capital gains; and
  2. b) the new shares you purchase won’t qualify for any CGT discount unless held for more than 12 months (33% super funds, 50% for individuals).

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