Discussion:C Corp Net Capital Loss
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Discussion Forum Index --> Tax Questions --> C Corp Net Capital Loss
| 25 August 2006 | |
| Anybody have any inventive uses of Net Capital Loss for a C Corp going on year 4 of a carryforward? Result of stock trading losses.
$180,000 total. | |
Green hunter (talk|edits) said: | 25 August 2006 |
| Can I ask you a question - are you a trader or an investor? If so have you elected the mark to market election under Sec. 475(f)? | |
| 27 August 2006 | |
| No, not a trader or investor. This is just a C Corp who thought he was a trader back around bubble time. The C Corp is a landscaping business with about 6 employees. | |
| 28 August 2006 | |
| Hi unless you liquidate the corp and take the loss personally assuming the shhr had to put the money in or not if just prior ret earnings loss you are stuck unless you have a new crystal ball. bye | |
| 30 August 2006 | |
| So what happens to the Capital Loss exactly after year 5? Just goes away right?
Corp has no capital/investment assets to sell that could create an offsetting gain. Corp owner refuses to touch the Stock MarkIT with a 10 ft pole to even try for some capital gains. Just going to lose it all? Liquidation not an option. 99% sure its a loss from prior retained earnings. And no new or old crystal ball! Nor a time machine. | |
| 30 August 2006 | |
| Hi even though lost for corporate deduction after 5 years he may still get the "benefit" of the loss at liquidation (whenever) because he has less money (due to the loss) to pass out against his basis in the stock or loans to the corp. ok? Otherwise it wasnt the smartest thing to do. bye | |
| 30 August 2006 | |
| Thanks. Sure doesn't seem like the smartest thing to have done. Prior CPA had not offered any advice or proactive help with the problem for 4 years. Not even addressed the ramifications of it with him as part of the $4,000 bill. | |
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