Capital loss : how long does it last for

In 2005 I bought 4000 shares (in my own name) in a start up company (25c each and so total cost was $1000)

They recently closed and I got a payout of $91 (0.024c each).

Can I claim this loss (of $909) in my tax return?

I have no other form of income other than my job.

...I'm wondering if I can only claim this loss against a capital gain (or can it be against an income?). If it can only be claimed against a capital gain, then I'm not going to be able to claim it for perhaps several years...so how long can I keep this loss around for and then still claim it?

Thanks in advance,

Chiz
"Inspect and Adapt"

Hi Chiz,

I am not an accountant or tax advisor, so I will certainly allow for any revision of my comments by more qualified people, but here goes:

If the shares have now been delisted/closed from the market, then you may claim the capital loss in this tax year.

The problem for you will be that, as you pointed out, it can only be claimed against a capital gain, not against PAYG income.

I believe you may carry forward the capital loss indefinitely so when you have a capital gain to offset it against (even if 10 years from now), you may then do so.

Hope this helps.

Regards,
YI

"Knowledge is Power"

Thanks. I'll check with my accountant now I know there's a chance I can claim it one day.

Cheers

Chiz
"Inspect and Adapt"