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.
