A corporation bought its first property, a vacant lot (#1) in 2015 for $200K, and vacant lot #2 in 2018 for $500K. These properties don't generate any income; therefore, as of 2020, the corporation has $120K in retained earnings (combined loss from these 2 properties).
On 1/1/ 2021, vacant lot #2 was sold for $620K.
Lot #2 sales price $620K - $500K purchase price = $120K gain from sales of lot #2
Can the gain from sales of lot #2 (120K) be net off with loss carry forward ($120K) so that the corporation has no capital gain in 2021?
You'll need to sign in or create an account to connect with an expert.
we don't have sufficient information. is this a C Corp or S Corp? what was the purpose of buying the properties? some of those losses/expenses possibly should have been added to the tax basis of the properties or maybe the expenses need to be allocated between the properties.
This is a C corp. Buying the vacant lots for investments with the intention to sell them to the right investment. The accumulated losses are from property taxes and lot maintenance.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
kevin-chow
New Member
saaaa
Level 2
ap268
New Member
Kipmc7
Level 3
mstruzak
Level 2
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.