Selling at a loss? Check what happens to the capital loss first.
Protect the asset and your financial position.
Best for: Owners considering selling below their purchase price
A capital loss on one property isn't automatically a wasted outcome. Used well, it can offset gains elsewhere or be carried forward. Used without a plan, it's just money left on the table.
What to check
- Whether you have any capital gains this financial year or expect one soon (from this or another asset)
- Whether a capital loss can be carried forward if there's nothing to offset it against right now
- The timing of any planned sale relative to your other gains or losses
- Whether the loss is a genuine capital loss or affected by other factors your accountant needs to assess
Who can help
Accountant
What the loss could offset and how carry-forward works.
Financial adviser
How the timing fits your broader position.
TAKE ACTION · QUESTIONS TO ASK
One conversation with your accountant before setting a sale date
Questions for your accountant
Copy these questions and take them to your accountant.
USE AI TO HELP
Use AI to prepare the conversation with your accountant — the treatment of a capital loss is theirs to determine.
Best prompt for this issue
I'm considering selling an investment property at a loss. Prepare the questions I should ask my accountant about what happens to the capital loss, what records they'll need, and what timing factors matter. Do not attempt to answer the tax questions yourself — organise them for the professional conversation.
Quick modes
WHAT TO PROVIDE
- expected sale price range
- your cost base records
- why you're considering selling
ASK AI TO GIVE YOU
- a short summary of the situation
- the main issue
- missing information
- risks to investigate
- questions to ask
- the next three actions
Privacy: do not paste passwords, tax file numbers, bank account details or other sensitive personal information into an AI tool. If a document contains personal details it doesn't need, redact them before uploading.
What happens next
Your accountant will confirm whether timing the sale within this financial year or delaying it changes the tax outcome. This is a case where the calendar date of settlement can matter as much as the sale itself.
Important considerations
- This is general information, not personal financial or legal advice. Confirm specifics with your own adviser before acting.
THE HOLD QUESTION
If this property is underwater, is the loss being used deliberately, or just absorbed?
NOT SURE WHAT TO ASK AI?
Ask a Better Property Question
Most people don't need more AI — they need to ask AI better questions. Type your question (or skip it) and copy a prompt that makes any AI tool ask you the right things first.
I am trying to understand this property issue. Before answering, identify any important information that is missing. Ask me only the questions that materially affect the answer. Once I respond, explain the issue in plain English, separate facts from assumptions, identify the main risks and give me the next three actions. Flag anything that should be confirmed with a qualified professional.
Privacy: do not paste passwords, tax file numbers, bank account details or other sensitive personal information into an AI tool. If a document contains personal details it doesn't need, redact them before uploading. This is a way to prepare — not financial, tax or legal advice.
Not sure what else to review?
Run the Annual HOLD CheckThe Kilroy Brief
One practical briefing on the policy, tax, cost and cash-flow forces shaping Australian property ownership. For owners, investors and advisers who want the mechanics behind the headlines. Sent when there is something worth saying, not to fill a schedule.