All Topics / Legal & Accounting / Offsetting a Capital Gain

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  • Profile photo of paula3paula3
    Join Date: 2006
    Post Count: 3

    Hi to everyone out there.- Could anybody please help me with the following senario:
    We own a business Chefunder a trust structure that last financial year ran at a loss, ie: a trading loss as opposed to a capital loss.
    We are about to start buying & selling property under the same trust structure. How do we offset a trading loss against a capital gain? Is this possible ( I certainly hope so)? We will be selling the business soon so won't be able to just offset one years loss against anothers gain.
    If anyone has any ideas or can direct me to some clever accounting typesReading it would be greatly appreciated.(we are in the southern Gold Coast / Tweed area.)
    many thanks

    Profile photo of trajiktrajik
    Join Date: 2005
    Post Count: 102

    First things first…why are you holding business & investment assets in the same trust?  Potentially exposing your investments to business risk and compromising the asset protection advantages of the trust?

    Secondly, you can offset the trading loss against the capital gain.

Viewing 2 posts - 1 through 2 (of 2 total)

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