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How to offset capital losses against other income?

Article ID
ias-5106
Article Name
How to offset capital losses against other income?
Created Date
4th December 2007
Product
IRIS Personal Tax
Problem
How to offset capital losses against other income?
Resolution
Users are required to: 1. Log on to IRIS and select the client. 2. From the Edit menu, select Capital Assets. 3. From the Capital Assets Edit menu, select Losses and Other Information. 4. Complete the Losses used against this years income section then click OK. If you wish to offset capital losses against a previous year’s income and you have entered the figure into the box that says losses used against last year’s income please be aware that this will not alter the previous return and you will need to do the following in the year that you wish the capital loss to be offset in. 1. Choose the correct year at the top 2. Go to Other Income/Any Other Losses 3. In the Future Trading or Certain Capital Losses put in the loss that you are bringing back and click OK 4. Go to Reliefs/Miscellaneous/Tax Calculation/Tax Overpaid-underpaid etc and in the bottom box which says ****** (year) tax reclaiming now – put the tax saving that your client will make by carrying back this loss 5. Go to Additional Information/SA110 and put a note in stating that the client has made a capital loss in the year **** which has been carried back to **** 6. You will then need to send in an amended return.

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