Monday, January 30, 2012

Capital Loss Carrybacks and Carryover

Rules for Capital Loss Carrybacks and Carryover 

Under § 1212, corporate taxpayers may carry back those capital losses for up to the three preceding taxable years to offset any net capital gains that corporation might have enjoyed in those prior years. Immediate refund can be obtained for anything a taxpayer deserves from the IRS.

For non-corporate taxpayers, there is no carryback provision. However, losses that are nondeductible because of the § 1211 limitations may be carried over to future years indefinitely. You can offset the whole amount against ordinary income because of the small business exception.  

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