QUOTE(Hansel @ Dec 15 2016, 09:29 AM)
Tq Chinoz,... appreciated yr explanations.
May I know pls, what is CGT, and if a foreigner has not sold the shares (meaning realise the losses), how does he use the losses to offset the dividends earned at year-end ?
CGT = Capital Gains Tax.
Just like how RPGT is payable in Malaysia when you profit from sales of Real Property, CGT is payable when you profit from sales of capital assets.
Capital losses can only be used to offset capital gains, and can be carried forward to future years - should've made it clearer in my initial post.
QUOTE
You can't deduct a net capital loss directly from your income, but you can carry it forward and deduct it from capital gains in later income years.
There is no time limit on how long you can carry forward a net capital loss.
You must offset your capital losses against your capital gains in the order in which you made them. You can't choose not to offset capital losses against capital gains if you have them, but you can choose which capital gains to deduct your losses from.
So if you make $5 profit on one stock counter, but incur $2 loss on another, your net capital gain for that year is $3.
There may be other deductions permitted with regards to dividend income.
For instance, if you've borrowed money to purchase said dividend stock, you're allowed to deduct the interest expense.
Disclaimer : I'm not a tax accountant, just a frequent lurker of the ATO website.
Dec 15 2016, 08:26 AM
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