In a recent column, you mentioned carrying forward a capital loss from a previous investment. I was told you cannot do this, so would appreciate your viewpoint. I hold a power of attorney for my son, who is Australian and has worked overseas for more than 20 years for an arm of the United Nations. He has five investment properties in Melbourne and, before the outbreak of COVID-19, decided to sell three. One, held for 20 years, should make a healthy profit but the other two, held for eight and nine years, respectively, would be lucky to sell for a loss of $50,000. If one or two are sold in this financial year at a loss, could those losses be carried into a following financial year to offset the profit of number three when sold? What is the tax rate for a non-resident? F.C.

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If your son generates a capital loss in 2019-20, it can be carried forward indefinitely and can offset future capital gains, but not income. A realised capital gain is taxed in the year the property is sold.

Good tax planning would therefore suggest that you either take your losses first, or sell all three in the same financial year. Note that a Capital Gains Tax event generally occurs when you exchange contracts, not when you settle.

As a non-resident, the first $87,000 of taxable income is taxed at 32.5 per cent, with no Medicare Levy, while the excess, up to $180,000, is taxed at 37 per cent, then rising to 45 per cent.

Dont tell your son that United Nations pensions are taxed in Australia. He might be disinclined to return!

I have a five-ounce gold ingot which I have had for many years, put aside for a rainy day. With the gold price quite high now, the rainy day has come, as I need some maintenance work on my house. There is a stamp on it for the Australian Bullion Company, the percentage of gold, and the weight. Can you please advise the best and safest way to sell the ingot? V.P.

ABC should buy back your gold bar. The company has offices in capital cities, excluding Adelaide. Call them on 1300 361 261.

You have done well. At the time of writing, gold in Australian dollars is up 12 per cent in 2020 and has almost doubled in the past decade, although it has been drifting down since March, as the US dollar weakens and our dollar strengthens accordingly.

If you have a question for George Cochrane, send it to Personal Investment, PO Box 3001, Tamarama, NSW, 2026. Help lines: Australian Financial Complaints Authority, 1800 931 678; Centrelink pensions 13 23 00. All letters answered.

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