R4-M6 NOLs and Capital Loss Limitations

Question 1

what are things to keep in mind for corporation CAPITAL losses?

Answer 1

• if use to offset PY income using carry back rules, the PY capital income is limited by the taxable income of that year. ex: CY capital loss 100. PY capital gain 50, but taxable income of PY is only 45. Therefore, we can offset only 45 from 100 loss of CY capital loss