Capital Gains and Losses - C Corporations

[Yohan47]

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?

[Mike9241]

is there schedule PH in the return?

[Yohan47]

No

[Rick19744]

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.

[Yohan47]

Thank you.

[Rick19744]

You are welcome.