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December 18, 2023
Question

Capital Gains and Losses - C Corporations

  • December 18, 2023
  • 2 replies
  • 0 views

In the return for my C Corporation I have

- gain from the sale of a business property (real estate, short term)

- capital losses from the sale of stocks (short and long term)

- NOL from previous years

Turbo Tax Business offsets only the NOL in Form 1120, line 29a, against the gain, not the capital losses in line 9.

Is that correct? Can I override it?

2 replies

December 18, 2023

is there schedule PH in the return?

Yohan47Author
December 18, 2023

No

Rick19744
Employee
December 18, 2023

Based on the facts, TT appears to be handling this correctly.

Since your gain on the real estate is ST, this is treated as an ordinary gain; not capital.

For C corporations, capital losses can only offset capital gains.  Any excess CL is carried back 3 years and then forward 5.

 

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.
Yohan47Author
December 19, 2023

Thank you.

Rick19744
Employee
December 19, 2023

You are welcome.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.