Capital Gains and Losses - C Corporations

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?

1244

Level 15

Dec 17, 2023 9:30:58 PM

is there schedule PH in the return?

New Member

Dec 18, 2023 5:13:03 AM

Level 13

Dec 18, 2023 12:00:26 PM

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.

New Member

Dec 18, 2023 4:53:02 PM

Thank you.

Level 13

Dec 19, 2023 2:12:29 PM

You are welcome.