Can capital loss in Shares offset gains in property?

Capital losses can only be offset against capital gains.

Otherwise they are carried forward until a capital gain occurs, at which time they will offset the gain.
No, the loss amount is carried forward as is.

AND, once you get a capital gain, you deduct the loss BEFORE you do the 50% reduction for holding the asset for over 12 months.


carrying forward a $100K loss

years later you sell an asset you have held for 10 years and realise a $100K capital gain.

The loss simply wipes out the gain. You lose the benefit of the 50% reduction you would otherwise have received.

Don't you just love the Tax Act?????????
after 10 years, the loss I have encounter is neligible to the gain I would have made......the Tax Act is written by economists!!
One more question, when they are carried forward, do they undergone indexation?


Indexation can be used to increase the cost base of an asset that has incurred a Capital Gain instead of using the 50% discount method if the asset was bought before 21 sept 1999, this is probably where you are getting the indexation terminology from
If you recently bought it then you can't use indexation.

Indexation ceased in 1999 so there is no further indexation after that date.